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Massive budget cuts coming to NYS soon, but next year could be worse

Make changes now, because there is more bad news coming.

New York’s financial outlook says that a recession ‘worse’ than 2008 is expected in the months following the Coronavirus Pandemic.

Budget officials believe upwards of $8.2 billion in cuts will be necessary next month alone.

“The state really spends most of its money on Medicaid and education so those are the two areas that are likely to see the biggest cuts,” said David Friedfel to Spectrum News. He serves as director of State Studies for the Citizens Budget Commission.



“The state is going to have to be very careful that it targets those cuts to school districts that can still provide a sound, basic education even if they don’t have as much state resources coming in. And that the state’s neediest schools continue to get state revenue because they don’t have the local tax base to depend on,” Friedfel added.

Altogether the state is expected to lose $60 billion in revenue this year, which equates to roughly $10 billion less in total spending.

The ugly side of this news is that it’s likely going to worsen next year before it improves.

“Next year is likely to be as bad or worse, so they need to make changes that are going to provide savings in the long term and not just defer payments,” Friedfel continued.