A year ago, New York's finances were in serious doubt: Pay raises for public workers were put on hold, money was borrowed to cover essential expenses and economic activity was largely frozen in place as businesses and gathering spaces closed due to the pandemic. 

But now, as COVID-19 cases recede and more people are vaccinated, the state's finances are receiving a boost from two key rating agencies. S&P Global Ratings and Fitch Ratings on Monday raised New York's credit outlook.

The practical effect is the state could have an easier and cheaper time borrowing money. And the economy most New Yorkers experience remains unsettled as the jobless rate remains above the national average in New York.

But it's also reflective of the state's much-improved financial picture more than a year after the first COVID case.

The state's budget received a boost from the federal stimulus package approved in March, more than $12 billion meant to offset pandemic losses. Weeks later, lawmakers and Gov. Andrew Cuomo reached a budget deal that boosted taxes for corporations and upper-income New Yorkers that is expected to generate billions of dollars in additional revenue. 

"Coupled with a decade of fiscal integrity preceding the pandemic, an economic recovery that's beating expectations thanks to our nation-leading vaccination programs, and hard-fought-for federal funding, New York State is today emerging from this unprecedented crisis on firm financial footing," Cuomo said. "I'm encouraged to see these efforts recognized by the major credit rating companies, who today upgraded our State's fiscal outlook to 'stable.' As we leave the pandemic behind, we will continue to work with our partners in the Legislature to keep our State's finances on track and keep our economy growing."