Governor Andrew Cuomo warned on Monday that major cuts would be coming if significant federal aid does not arrive to assist New York with its pandemic-induced budget crisis.
Altogether, the Governor says that $59 billion in federal aid would be needed to avoid across-the-board spending cuts.
A letter backed by labor leaders in New York from the Governor says that ‘no combination’ of state-based solutions, like raising taxes or cutting spending, will offset the sheer volume of funds needed to balance the state’s budget.
“Even if state and local governments cut expenses, increase taxes, and reduced services, the revenue shortfall would still be in the billions of dollars,” the letter states. “Moreover, forcing state and local governments to take such actions would only further the pain and extend the period of time for the nation’s economy to recover.”
“Virtually all economists agree that forcing state and local governments to lay off employees and reduce services will negatively impact the national recovery,” the letter continues. “We saw that with the last fiscal crisis in 2007-2009, and we know that it will play out again.”
Cuts are expected at local governments, schools, hospitals, and other entities that receive funding from the state. New York has already held back 20% of aid amid uncertainty at the federal level.
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