Conclusion Tonight I have highlighted some of the fiscal challenges faced by elected officials, both in New York and in other regions. In the past few years, the weak economy has significantly reduced government revenues, which in turn has forced governments to make difficult decisions on spending and taxes.
An improving economy should help, but state and local finances will remain under pressure for some time. Moreover, states and localities are facing difficult longer-run issues related to pension and health-related expenses for their retired employees.