The following appeared on Monday, May 27, 2024, in the Blank Slate Media newspaper chain and on its website, theisland360.com:

My last two columns were devoted to scrutinizing the state’s unsustainable and irresponsible $237 billion tax-and-spend budget that projects a structural deficit of at least $16 billion.

On May 17, state Comptroller Tom DiNapoli released his analysis of New York’s Fiscal Year 2024-2025, which not only confirms some of my observations but raises additional concerns.

“At the state level,” DiNapoli explained, “certain revenue streams that have been critical to maintaining budget balance are either scheduled to expire or to be depleted in the years ahead, including temporary higher Personal Income Tax, Corporate Franchise Tax rates, and one-time COVID-19 financial assistance from the federal government.”

When these revenue streams dry up, the comptroller concluded, “Current spending levels will be difficult to sustain.”

No surprises there. However, it’s a sure bet leftists in Albany will extend the PIT and franchise taxes—they rarely let temporary taxes expire.  But dried-up COVID money hurts.  It will only pump up the structural deficit.

The next red flag: “All Funds” revenues are projected to decline by $7.3 billion. “This decrease is primarily attributable to projected reductions in investment and gaming receipts. In addition, receipts from the American Rescue Plan are expected to be depleted.

Growth in PIT, which is three-quarters of total tax revenue, is projected to grow a mere 1%.

DiNapoli goes on to warn that the state’s financial plan is too reliant on a “volatile PIT that depends on a small number of filers.”

Sound familiar? I have been preaching that for years in On the Right columns.

For taxpayer year 2021, DiNapoli noted, “Those with incomes over $1,000,000 comprised 1.6% of the PIT filers but paid 44.5% of the total PIT liability.”

And since 2021, a significant number of that 1.6% of PIT filers have moved to—a drum roll please—Florida. (A newly released Census Bureau report indicated that between 2020 and 2023, the Empire State lost 561,164 residents.)

As for “rainy day” reserve funds: “Despite greater revenues than originally anticipated by the Department of Budget, no additional deposits were made to the statutory reserves in 2023-2024,” the comptroller said. Instead, so-called “reserve” funds are being deposited in informal reserves, such as the “Economic Uncertainties Fund” that can be used by the executive for any appropriated purpose, without requirements for replenishment.”

In other words, the “Economic Uncertainties Fund” is the governor’s personal slush fund to spend at any time on favored projects.

To give the appearance of “containing costs” in Medicaid, the state is utilizing fiscal sleight of hand tactics that go back to the days when Nelson Rockefeller was governor. The state deferred Medicaid payments “across state fiscal years, pushing $1.4 billion that was due to be paid in March 2024 to April 2024,” according to the analysis.

The comptroller also pointed out that the governor’s budget continues to utilize “back door” borrowing to fund capital spending.

To avoid voter rejection of new borrowing on Election Day, billions of new debt will be issued by public authorities, “further adding to the state’s already high debt burden and utilizing limited remaining capacity under the state’s debt cap,” Di Napoli said.

Then there is the lack of transparency and oversight: “In the enacted budget, at least $367.6 million is exempt from the Office of Comptroller’s oversight and normal competitive procurement requirements. An additional $1.5 billion is exempt from normal competitive procurement requirements; and another $1.9 billion may allow funds to be distributed at the discretion of the Executive/DOB without following the normal competitive requirements,” the report said.

Apparently, the governor does not want the state comptroller’s independent pre-review of contracts, which “serves as an important deterrent to waste, fraud and abuse,” to reward cronies and contributors.

There’s more: “The budget continues to include problematic provisions with respect to accounting standards that have the potential to distort the appearance of reported receipts, disbursements, and liabilities, and obscure the picture of true spending growth,” according to the report.

Once again, the governor and her pals in the state Legislature are abusing power and are overspending. And the only people that will be punished for their shenanigans will be the taxpayers.