Naughty Banks Create Nice Gift for New York

Call it a Merry Christmas for Governor Cuomo. The state has a more than $5 billion windfall from a slew of bank settlements this year. The money comes from BNP Paribas for violating sanctions with Iran, Sudan and Cuba, Credit Suisse for aiding Americans with tax evasion, and from settlements related to the mortgage crisis. A spokesperson for the governor says spending related to the settlements will be announced as part of the budget next month.

In the meantime, just about everyone’s got ideas for how to spend it.

Education activists want it for schools. Transportation advocates want it to pay for the MTA's Capital Plan (which is facing a $15 billion gap) or the new Tappan Zee Bridge, where construction is already underway but funding remains unknown. Some Republicans say they’d use it for tax cuts.

Elizabeth Lynam with the Citizens Budget Commission says the governor and state legislature should only sign off on spending that saves money down the road and generates clear economic benefits. "The real question is where are we going to get the highest return," she said. She advised against using the money on recurring expenses, like tax cuts, and for paying down debt, boosting rainy day funds or investing in infrastructure. 

How would you use the money? Tell us in the comment section below.