New York state may have some padding for a potential economic recession amid concerns of a broader downturn as interest rates rise in order reduce inflation not seen in 40 years.
Comptroller Tom DiNapoli in a Capital Tonight interview on Wednesday pointed to the money stuffed into New York's reserve fund — a rainy day account for when the economic weather turns bad.
"A key part of what Gov. Hochul proposed and the Legislature fortunately went along with was building up our reserves," DiNapoli said.
What's that mean for taxpayers? For starters, it could result in a recession having less of an impact on spending for schools, social services or other programs that New York's $220 billion state budget funds every year.
New York's coffers rely on a relatively small number of very wealthy tax filers for the bulk of its budgetary revenue. A recession could create high tide for that money. But for now, DiNapoli said in the interview, the money coming into the state has not slowed down.
"There's been a significant boost in those reserves, so that should provide something of a cushion," he said. "We're still coming ahead of projections on the revenue side. So there is concern out there, appropriately so. The situation can change rather rapidly, but the revenue coming in to the state is higher than expected."
Neverthless, the governor earlier this month told her cabinet to consider budgets that may have significantly less funds next year amid all the uncertainty.