ALBANY-A sobering report released last week indicated that the state’s financial plan through 2029 has a growing structural budget deficit with a cumulative three-year budget gap of $34.3 billion, as forecasted by the Division of the Budget. When accounting for recent federal actions, the gaps as a share of spending could reach levels not seen since the Global Financial Crisis of 2009, according the report.

The $34.3-billion gap is up $7 billion since the January release of the Fiscal Year 2026 Executive Budget Financial Plan. The gap is attributable to downward revisions to the economic forecast and projected revenues as well as increases in projected spending.

“The Financial Plan paints a challenging picture for the state that will only grow more problematic with the incoming federal cuts from the reconciliation bill signed by the President,” State Comptroller Thomas DiNapoli said. “This is likely just the beginning; the relationship between the federal government and the states is being restructured, and state governments will be facing drastic reductions in federal aid that could force difficult decisions about state revenue and spending priorities. There is an urgent need to formulate a fiscal response to the federal reconciliation bill and support New York’s safety net.”