New York Tax Revenue to Drop $9.6 Billion, Squeezing Spending

New York Gov. Kathy Hochul’s (D) office said it’s considering limiting financial support for migrants, with state tax revenue expected to decline $9.6 billion in the current fiscal year compared to a year prior.

The expected 8.5% drop in overall tax receipts will put a squeeze on new spending, even as the state has managed to reduce future budget gaps through cost-cutting efforts, the Hochul administration revealed Monday in its midyear update to the state’s financial plan for fiscal 2024.

New York’s projected budget gap for fiscal 2025 has decreased from $9.1 billion to $4.3 billion, ...