Budget is finished. Looking at MTA finances.

0:00 Speaker 1 What is today is Tom DiNapoli, the New York State Controller, and he manages a lot of money. I guess the last time I looked, there was almost three hundred billion dollars. And let’s get an update from the ConTroll of Tom DiNapoli. Tom, what the heck is going on upstate? Is New York State going to survive?

0:23 Speaker 2 Oh? Absolutely, New York State will survive, John, There’s no doubt about it. It’s great to be back with you. You know, the budget was put together. It was a little later than expected. It certainly is a record high number.

0:34 Governor Hockel set out some I think reasonable parameters, but as we know, in any process of the legislature will also put their imprints on the budget, so it raised it a bit more. But the good news there, John, is that the receipts have been coming in higher than projected.

0:49 In fact, we ended the last school year that ended up March thirty first, with two billion higher than had been projected. So despite some of the concerns that out there, you know, so far, revenue is holding up. We’ll continue to monitor that as we go through the current fiscal year that officially began on April first, But so far,

1:09 so good. Stock market now seems to be rebounding a bit. There was a bit of volatility, but it looks like we had a very positive year that ended on March thirty first for our pension for us so we’re not quite a three hundred billion, but we’re certainly back on the upswing. So Yeah, New York is going to survive,

1:24 and the numbers are holding up. We still have to be very careful because, as you know, a lot of uncertainty in the economy. Volatility is still there in the markets, inflation, interest rates, all of that. The overall context of a challenging political climate and the uncertainty of that creates so we have to be very careful with how we’re spending

1:43 money understood.

1:48 Speaker 1 What else? I mean, the money is coming in more so than you expected, which is good news. The exodus. Are we losing a lot of millionaires? I understand one one out of twenty four New Yorkers as a millionaire.

2:04 Are we losing those people?

2:06 Speaker 2 Yeah, I mean we got we have more millionaires than any other, you know, part of the country. So there are new ones being made. But you know, there’s no doubt about it that there has been a net migration.

2:15 It hasn’t been the stampede, you know that some of the critics suggest, but that is something you know, we’ve been monitoring. There’s always a leg on the data, so we’re going to continue to keep a close eye on that.

2:25 We’re also losing people at the other end, you know, who can’t afford to live here. So for folks at the upper end, it’s often a tax burden question is part of it. Folks at the other end, it’s affordability.

2:38 But I think John, and I know you talk about this a lot on your show, it’s also quality of life issues. It’s about public safety, it’s about homelessness, it’s about mental health issues that too many New Yorkers are suffering from and don’t seem to be getting the services that impact on everyone’s quality of life. So I think

2:54 there are different reasons why people may be leaving. But at the end of the day, certainly, compared to what it was like during the pandemic, when we saw a big decline and people moving outside of the city, either to Long Island, Hudson Valley, or down south, that certainly has moderated and so it’s not as severe as it

3:12 had been. We have to continue to track that though, and I think that’s why in this year’s budget processes, as you know, the governor said broad based increase in income taxes and that held up when the final agreement was put in place.

3:26 Speaker 1 And what is your personal feeling, is the MTA going a congestion tax? Is that going to go? Is that going to happen?

3:34 Speaker 2 Well, you know, let me say this, A lot of that’s gonna depend on the courts, right because as you know, there’s a fair amount of opposition. I certainly heard it discussed on your show many times. But look from the from our perspective, whether you like congestion pricing or think it’s a bad idea, the MTA’s capital plan is very

3:53 dependent on that revenue. So if congestion pricing is not going to happen, it will blow a significant hole in the cap little plan. We have to come up with money from somewhere. And as you know, if we don’t keep the trains and the subways, the buses in a state of good repair, people aren’t going to want to

4:11 use them. That’s that’s going to be part of the issue. And we are not back to pre pandemic levels of ridership, and the MTA depends on the folks using the system paying the fares. That’s a big part of the financing.

4:24 And you know, the projection is hopefully we’ll be back to eighty percent by twenty twenty six. I think it was the last year I saw. We’re not there yet. We got a ways to go. So we don’t want to see the system get into poor repair because that’ll be then a disincentive for people to want to use

4:39 the system. Also, issues of public safety cleanliness have to be addressed as well. But if we don’t want congestion pricing on them, many people don’t want it. You have to come up with another revenue source because the capital plan is dependent on that revenue.

4:53 Speaker 1 Oh what I’ve said to them is until New York Manhattan at least makes a comeback, maybe to should just delay it for a year or two, because you know, half the stores in New York are empty because of you know the other problem bail Lop.

5:10 Speaker 2 Well, no, you’re right, and the MTA really has already signaled that, you know, because of the uncertainty, they are putting off some of those capital projects already. Whether it makes sense or a policy perspective to put the whole thing off, which would only delay implementation of capital projects even more. You know, that’s going to be up to

5:26 the MTA board to decide, but I think ultimately it’s going to be a court that will rule whether or not it’s going to proceed and what the timeframe will be understood.

5:36 Speaker 1 We got have a thirty seconds left. Any anything else you want to tell all New York City New York State people.

5:41 Speaker 2 Well, same thing. When New York City, we’re looking carefully what’s happening with the city budget, also doing a little better on revenue. The mayor put off some of the expected cuts. The city’s workforce is expected to increase actually for the first time since the pandemic, So in terms of providing services, you know, filling some of those vacancies,

5:57 that will be good news for city services. So, hey, are their challenges out there, John, There are? But as I always say, and I know you feel the same way, never bet against New York City, Never bet against New York State.

6:09 Speaker 1 Listen, New York is the greatest city in the world, and I love it, and I’m doing everything I can to yell, scream and holler to make sure we keep New York City and New York Is safe because they deserve to be safe.

6:24 Speaker 2 And we bless you for that. John, You’re one of our leading citizens and you make a big difference each and every day, and we need more. John Kats mateitases out there. Thank God you’re here.

6:33 Speaker 1 Thank you, Tom DiNapoli, and I look forward to seeing you soon someday.

6:37 Speaker 2 Take good care, Thank you.