Spending growth should once again be held at 2 percent for state agencies and departments in the coming 2020-2021 fiscal year, Division of Budget Director Robert Mujica wrote to state commissioners in a letter on Friday.
Mujica writes New York continues to face “economic headwinds due to the trade war, as well as policies imposed by President Donald Trump’s administration on taxation, health care and public assistance.
The letter from the Division of Budget director to department and agency chiefs has been a perennial one for the administration, with 2 percent limit being a targeted spending cap now entering a third term. the letter serves to formally ask department and agency chiefs for their budget proposals for the new fiscal year.
The 2 percent spending cap does not include school aid or Medicaid spending, which is subject to statutory limits as well as federal funding.
“Your agency strategic plans and program inventories are critical in delivering a high performing government for New Yorkers, and your budget requests should reflect the performance strategies your agency is undertaking which provide the best value for New York taxpayers,” Mujica wrote in the letter.