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New York Really Does Deserve Federal Help - Wall Street Journal

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Gov. Andrew Cuomo in Albany, N.Y., April 29.

Photo: mike segar/Reuters

In “New York Is No ‘Donor State’” (op-ed, July 22), Matthew Schoenfeld critiques the concept of analyzing each state’s balance of payments between federal revenues paid and spending received, as originated by the late Sen. Daniel Patrick Moynihan. My office revitalized the Moynihan “federal fisc” reports several years ago with an analysis of federal fiscal year 2013.

We found that New York received less than 91 cents in federal spending for every dollar paid to Washington, while the average nationwide was $1.22. In repeated analyses, we find that while the numbers change from year to year, the Empire State’s taxpayers consistently send billions of dollars more to Washington than we receive back. The actual amounts of taxes paid and spending received aren’t in serious dispute.

Mr. Schoenfeld suggests that we look instead at indirect effects, such as the value to all Americans of our nation’s defense spending. Who benefits from federal spending is an important concept, but cannot easily be quantified. Should we count farm subsidies as benefits to agricultural states, or to everyone who buys food? We can see where the $64 billion in federal transportation spending in FY 2018 went, but who benefits from a national transportation system? These questions are worth thinking about, but first we must have the actual numbers.

New York state is suffering dramatic revenue losses due to the Covid-19 pandemic, as are other state and local governments. The federal government must step in with real relief. If not, residents of every state will suffer needless harm, and our economy will continue to struggle.

Thomas P. DiNapoli

New York state comptroller

Albany, N.Y.

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