Quantcast

Cuomo plans strategic state budget in light of $39B revenue shortfall by 2025

January 18, 2021 - Albany, NY - Governor Andrew M. Cuomo provides a coronavirus update from the Red Room at the State Capitol. (Mike Groll/Office of Governor Andrew M. Cuomo)

Governor Andrew Cuomo is asking only for fairness from the federal government in review of the fiscal year 2022 budget – and $15 billion in financial support as well as the repeal of SALT.

The revenue shortfall for the state is expected to reach $39 billion over the next four years and to fund some of the governor’s proposals outlined in the 2021 state of the state address, Cuomo said he is expecting President-elect Joe Biden to provide the means.

“Why the revenue loss? Because businesses were closed people weren’t working. They didn’t pay taxes, and that’s the revenue loss. The gap was projected to be worse, but as the economy has started running again. The gap has reduced, but it’s still very large,” Cuomo said during a briefing on the budget Tuesday. “Luckily we had $7.6 billion in reserves. A rainy day fund, if you will, that we needed to use the worst case scenario. What we envision is that Washington provides only $6 billion. That would only be 1.7% of the $350 billion package.”

Although Tuesday will be President Donald Trump’s last official day in office, Cuomo said there would be legal recourse by the state if the new administration under Joe Biden does not deliver on aid long withheld by the Trump administration and then-Senate Majority Leader Mitch McConnell.

Cuomo echoed his long-standing refrain that COVID-19 landed in New York before any other state with no action taken from the federal government in what the governor has called negligence.

“Fair funding from Washington would be $15 billion of the $350 billion. That’s only 4.3% of the 350 billion. Again it’s less than our population ratio. And considering what we went through, I believe it’s a modest request from Washington. If we received the $15 billion,” Cuomo added. “The caveat is if Washington doesn’t provide New York state with our fair share of funding we’re going to pursue litigation, because I cannot in good faith represent the people of this state and know that they are being harmed, and know that they are being treated unfairly and not do everything within my power to try to do what is right by New York.”

Cuomo also said that he believes that Biden will take the initiative in correcting the wrongs of his predecessor.

The repeal of SALT will also symbolize a form of stimulus, according to Cuomo, in that it will end the federal government redistributing the $30 billion from New York to other states in the nation, and could mean $12.3 billion more for the state each year.

Cuomo looked to 2021 during his four-part state of the state address last week with a $306 billion green energy and infrastructure development plan and a year with minimal closures.

More from around NYC