New York is now staring down a deeper financial hole, according to the state’s budget director. Blake Washington said Thursday that recent federal spending cuts will add a staggering $3 billion deficit to next year’s budget.
The state had already projected a $7.5 billion shortfall. Now, it must also contend with an immediate $750 million loss in Medicaid funds this fiscal year. Washington stressed that while this year’s gap may be manageable, the compounded impact will demand painful decisions.
He warned there’s no feasible tax solution to cover the losses and that major changes are ahead. Lawmakers have yet to confirm if they’ll reconvene in Albany for a special session, though Assembly Democrats plan to meet Friday.
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