ALBANY, NY — Joseph Hernandez, Republican candidate for New York State Comptroller, called out Governor Kathy Hochul’s $260 billion Executive Budget for continuing her record of reckless state spending and debt and causing massive future budget deficits.
In fact, Gov. Hochul projects spending to grow by 21.5% over the course of the state’s five-year financial plan, while revenues are only projected to increase by 8.7%. As a result, the state is forecasting massive budget deficits of $6 billion in State Fiscal Year 2028, $9 billion in 2029, and a staggering $12.5 billion in 2030.
“These numbers are a flashing red warning light for New York’s fiscal future,” said Hernandez. “When spending is growing more than twice as fast as revenue, that is not sustainable. It means higher taxes, more borrowing, or deep cuts down the road. After 19 years in office, State Comptroller Tom DiNapoli has done nothing to stop New York from driving off a fiscal cliff. Now more than ever, Albany needs an independent watchdog instead of a political lapdog.”
New York already spends $124 billion on its Medicaid program, where the state’s share of Medicaid funding has increased by 89% since State Fiscal Year 2019. The governor’s budget plan projects Medicaid costs to grow by $12.9 billion, or nearly 30% more over the next four years. Currently, New York’s Medicaid spending is 24% higher than any other state, and 77% above the national average.
“New York spends extraordinary amounts on Medicaid and its budget has nearly doubled in just seven years. Albany refuses to implement meaningful reform that’s needed to fight fraud, waste, and abuse in the program,” Hernandez said. “Instead of demanding accountability and auditing waste aggressively, Tom DiNapoli has allowed the largest program in the state budget to balloon without adequate guardrails. New Yorkers deserve transparency and cost control before essential services are squeezed out.”
Over the next five years, state-supported debt is projected to increase by 60%, from $61.6 billion to $98.3 billion. As a result, the state’s debt service payments are expected to increase by nearly 40% during that time period, imposing additional strain on both the state budget and its taxpayers.
“New York is on track to nearly double its debt in just five years, while pushing itself to the brink of its own debt cap,” Hernandez explained. “For years, backdoor borrowing has expanded, and the debt burden has exploded. A Comptroller’s job is not just to issue reports, it is to use the full power of the office to sound the alarm and stop reckless fiscal behavior before it becomes a crisis.
“If elected, I will aggressively audit Medicaid spending, scrutinize public authority borrowing, and demand transparency in every corner of state government,” Hernandez said. “We cannot continue down a path where spending grows twice as fast as revenue and debt rises 60% in five years. That is not fiscal management, it is fiscal malpractice.”