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At this rate New York State is going to need remedial school. Once again a look at how the state is performing reveals bad news, this time the focus is more specifically on the state’s budget outlook.
Truth in Reporting, a budget-watchdog group that examines state finances, has given New York an “F” after examining the state’s financial health in a new report.
The report placed New York 42nd out of the 50 states reviewed, with states like California, New Jersey, Illinois, and Massachusetts receiving similar scores. These are states that continue to be held back when it comes to managing a budget.
The main reasons for the failing mark are massive, expensive liabilities for pensions and retiree health-care. To put it in perspective, if these liabilities had to be paid today, the Legislature and Governor Cuomo would need to come up with $132.5 billion, clocking in around $20,500 for every taxpayer.
Morris Peters, the Governor’s budget-office spokesman, responded stating, “Seeing as how New York received upgrades from all three major credit-rating agencies because it balanced its budget . . . this report is clearly politically motivated.”
This is total misdirection, as credit rating agencies are not in the business of assessing long-term fiscal health, especially when it comes to the burdens driving out New Yorkers. Even so, it will only become more difficult for the state to pay off its massive debt and spending promises as taxpayers continue to flee to more friendly states.
What grade do you give New York’s budget and finances? If you think they’re in need of massive reform, join Reclaim today!