Institutional Federal Compliance Report 2021

T HOMAS P. D I N APOLI C OMPTROLLER

110 S TATE S TREET A LBANY, N EW Y ORK 12236

S TATE OF N EW Y ORK O FFICE OF THE S TATE C OMPTROLLER

September 1, 2018

To the Citizens, Governor and Members of the Legislature of the State of New York:

I

am pleased to present the Comprehensive Annual Financial Report for the State of New York for the fiscal year ended March 31, 2018. Under generally accepted accounting principles (GAAP), the State reported a General Fund operating surplus of $2.4 billion as of March 31, 2018 (compared to a $2.8 billion operating deficit last year), increasing the fund balance to $4.7 billion. However, New York State’s net position, a broader indicator of financial condition, declined to $28.7 billion, $236 million less than the previous year. The State’s net position continues to be impacted by high levels of debt and growing unfunded other post-employment benefits (OPEB) liabilities. This year’s decline in net position was also related in part to operating deficits at both the State and City university systems (SUNY and CUNY). The State’s primary revenue sources continue to be federal grants and the personal income tax, and major expenditures include those for education and public health programs. Total governmental revenues were $162.7 billion for SFY 2017-18, while governmental expenditures totaled $160.1 billion. On a GAAP basis, total debt outstanding was $56.3 billion as of March 31, 2018. Debt capacity under the State’s statutory cap is projected to decline to only $49 million in fiscal year 2020-21. While the State’s current fiscal position is relatively stable, risks remain on the horizon. There are uncertain financial impacts for the State and for New York households related to recent federal tax changes. The possibility of an economic slowdown, shrinking statutory borrowing capacity and threats to federal funding levels also place added pressure on the State’s fiscal health. This report is an important part of my obligation to provide accurate, objective and comprehensive financial information to the public and State policymakers. The Office of the State Comptroller will continue to provide oversight of these important issues in an independent and impartial manner, in an effort to ensure that the public is informed and its interests are protected.

Sincerely,

Thomas P. DiNapoli State Comptroller