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Aug 13, 2025  |  
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NextImg:New York state’s headed deep into the red — but Albany will ‘rely’ on denial

State Comptroller Tom DiNapoli just sounded a blaring alarm about the state’s cash shortfall — but the rest of the state’s leadership wants the fiscal crisis kept quiet.

They all knew trouble was coming, but the Legislature left Albany for the year having given Gov. Kathy Hochul the power to cut as needed.

That keeps the cutting out of the headlines, and (lawmakers hope) hangs any blame on the gov.

She’s asked state agencies to find $750 million in savings in the current-year budget. But next year, the nut jumps to $3 billion.

Longer-term, per DiNapoli, the picture grows even more distressing: Albany is facing its worst cash shortfall, as a share of spending, since the Great Recession — with $34.3 billion in red ink through 2029.

New York’s “softening economy” and preprogrammed “spending growth” already guarantee a growing gap, he warns, and future “drastic reductions in federal aid” may make the shortfall even worse than the comptroller now projects.

So he urges “policymakers” to “put the fiscal health of the State on a more sustainable, structurally balanced path.”

If only. For years, Hochul & Co. have OK’d billions in future spending, with nary a care about available cash: As DiNapoli reports, state-funded disbursements through 2029 are on course to soar 13.9% over current levels, while revenue ticks up just 4.6%.

Nor will it be possible to jack up taxes to plug the hole, not without fueling a mad rush by high-earners and job-creators out of state: Hochul (and Gov. Andrew Cuomo before her) already goosed taxes to the hilt, making New York’s tax burden the nation’s highest.

That’s why the gov is on record opposing tax hikes — though that hasn’t always stopped her from giving way to the Legislature’s demands for “revenue enhancements.”

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These gaps are no real surprise: Hochul, Assembly Speaker Carl Heastie and Senate Majority Leader Andrea Stewart-Cousins all knew months ago what was in store, as billions in federal pandemic-relief funds were set to run out and the Trump team made no secret of its intent to rein in aid to states.

Their response: Who cares? We’ll worry about it later.

Bet on the denialism to keep on dominating Albany: Hochul is running for re-election next year, with strong incentive to depend on gimmickry to paper over the state’s deficit until after November — and so make the longer-term problem even worse.

This warning may be the loudest DiNapoli offers for the next 16 months, as his fellow Democrats push him to collude with Hochul in denying that New York is staring at its worst budget crisis in years.