Financial basis

DiNapoli on NY’s financial situation; investment in China

The New York State Office of the Comptroller recently released a positive report on local sales tax collections.

Not only were collections 15.5% higher than last year, but they were 6.5% higher than they were in 2019, before the pandemic.

But other economic indicators, including the stock market, have been volatile lately.

On Monday, the S&P 500 posted its worst daily performance since May. The Dow Jones Industrial Average saw its biggest one-day drop since July.

“Your points underline the volatility of the weather we are going through,” said Controller Tom DiNapoli Capital tonight. “But more signs are good than not in terms of the state’s fiscal and fiscal position.”

DiNapoli highlights the state’s budget position, which, compared to the adopted budget projections, is up $ 5.9 billion in revenue. Additionally, in an updated financial plan that the Hochul administration released, there is an additional $ 2 billion in revenue.

“It may be a little more conservative based on what we are seeing today,” added DiNapoli.

That’s not to say that New York State is immune to events, including the expected failure of Chinese developer giant Evergrande.

When asked how invested the New York State pension fund is in some of the companies likely to be affected by the expected Evergrande default, DiNapoli said the state has some exposure. .

“[China] is such a big saving. If you want to be a universal investor, which we are now as a $ 260 billion fund, we’re going to be invested everywhere, ”he explained. “We have some Chinese exposure. It’s not what I would call percentage significant.

DiNapoli also said Capital tonight that his office has slowed investment in China.

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