New York collected more tax revenue per resident than any other state in the country in fiscal year 2024, according to a new report from the nonpartisan Citizens Budget Commission. The state beat second-place California by 22%.
New York also ranks near the top in per-capita government spending. The CBC placed it second overall, behind only Alaska — and Alaska’s top ranking is driven largely by the checks it mails residents from oil revenue, not agency spending.
The report identifies Medicaid and school aid as the two biggest drivers of New York’s spending growth. The state’s total Medicaid spending has climbed past $100 billion a year. The CBC and other watchdogs have flagged billions of dollars lost to fraud within the program, alongside political pressure from health care labor union 1199 and hospital industry lobbyists that has made spending cuts difficult for Albany lawmakers.
On education, New York spent nearly $32,000 per student statewide in fiscal year 2024 — 81% above the national average. Despite that spending level, the CBC notes the state’s academic outcomes lag behind states that spend far less, including Mississippi.
The CBC warns that New York’s tax and spending burden is actively driving away residents and businesses.
These fiscal burdens severely undermine New York’s ability to attract and retain residents and businesses.
The report also modeled what New York’s budget would look like if the state spent at the same per-capita rate as other states. Matching Massachusetts would cut total outlays by $64 billion. Matching New Jersey would cut spending by $99 billion. Matching Florida — which has seen an influx of New York residents and businesses in recent years — would cut spending by $170 billion, less than half of what the state actually spent in 2024.
Gov. Kathy Hochul and the Democratic majority in Albany control the state budget process. Voters will have a chance to weigh in on state legislative races this November.
