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Nys Budget Deficit

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Last Updated: 18 January 2022

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New York Fiscal Year Is Nearly Half Over And State Budget Remains Billions Of Dollars Out Of Balance, Largely Due To Effects Of COVID - 19 Economic Shutdown. So far, Governor Andrew Cuomo has been relying on temporary measures to keep state afloat, but fiscal experts say it is time to make some hard decisions. Ej McMahon, with conservative - leaning Fiscal watchdog Group Empire Center, and Ron Deutsch, with liberal - leaning Fiscal Policy Institute, do agree on some things. One, amount of state deficit is huge. Cuomo's Budget Office it has grown to $14. 5 billion. And two, that it is to worry. I think alarm bells should be going off all over place right now, Deutsch say. This has become most severe mid - year mess state has had at least since 2008, in Great Recession, said McMahon, who says shortfalls are likely to continue for several more years. Mcmahon said Cuomo was waiting for fifth Federal stimulus package from Washington that would include aide for cash strap State and local governments, and that still hasnt happen. This was high stakes gamble, and it came up snake eyes, McMahon say. Deutsch said State Budget makers can no longer wait Congress to Act. Waiting for Washington to is just not strategy, Deutsch say. And it is certainly not viable strategy at this point, because we have no idea if and when they are going to act. Governor Has Temporarily Held Back 20 Percentage In Aid Payments To Schools, Local Governments And Others, Under Emergency Powers Granted To Him By State Legislature. Deutsch says this is having adverse impact. Some poorer school districts are more dependent on State Aid are offering remote learning only this fall to save money. Some non - profits that contract with State are coping with delayed payments. Mcmahon said it inevitable that those temporary actions will become permanent. He going to have to eventually pull trigger, said McMahon. Both say permanent, across - board cuts are not best answer, but they differ on better alternative. Deutsch believes that higher taxes on New York's wealthiest can go long way toward closing gap. New York is home to some 118 billionaires, who, since pandemic began, have actually seen their wealth increase by $77 billion, Deutsch say. He said reinstating stock transfer Tax that is currently rebated back to brokers could immediately bring in billions dollars in revenue. Mcmahon says higher taxes wo work because wealthy will just change their permanent residence to another state. Youre going to be really in situation where pressure is overwhelming on those people to get to lower taxed jurisdictions, McMahon say. Cuomo, for months, has agreed with McMahon, saying even States ' richest ca bail out New York. Governor Says Any Hope Of Federal Aid Is Likely On Hold Until At Least After November Elections.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

Medicaid Warnings

Governor should have anticipated increased obligations, said Andrew Rein, president of Citizens Budget Commission, business - support Fiscal watchdog Group. Rein is skeptical that Cuomo can fill gap without deeper across - Budget cuts, which would require legislative approval. Cbc warned Cuomo earlier this year that Medicaid costs could spike and could be permanently papered over by governors ' recent practice of delaying Billion - dollar into next Fiscal Year. Cost controls instituted by Governor eight years ago have failed to stem recent expense increases, Rein say. States ' plan to address Medicaid - driven budget gap is one part gimmick and one part delay, he say. Plan To Solve Budget Problems Need Not Be Done Entirely Within Medicaid Program. Other portions of Budget also should be consider, including mistargeted aid to wealthy school districts and unproductive Economic Development Programs. Responding to criticism, Klopott noted Cuomo's of cutting Medicaid costs. In 2011, when they were rising more than 13 percentage , he created Medicaid Redesign Team that caps annual spending growth based on formula tied to national medical cost of living. New York State has kept Medicaid spending growth to less than half national average - saving taxpayers over $19 Billion, Klopott say, and this has been key to limiting overall State spending growth.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

Tax Tussle

Andrew Cuomo be spending much of New year explaining how he was caught off - guard by $6. 1 billion hole looming in his next state budget, caused by rising Medicaid costs. It is largest gap since Cuomo took office. Amid New York's recovery from recession, he closed $10 billion gap for 2011 - 2012 fiscal year with cuts to health care, education and personnel. This shortfall, disclosed in report last month, occurs during strong economy as revenue increase. Critics say third - term Democratic governor should have known better. Now, as Cuomo prepares to propose 2020 - 2021 budget in January, lawmakers and interest - group advocates are already quarreling over whether to impose more taxes on rich or cut services to poor and middle class. If current spending trends state would face $8. 5 billion in 2023, of which is about $3. 9 billion be for Medicaid. Cuomo's budget office says it's for savings. While Medicaid spending is projected to grow at almost 6 percentage year nationally, we are developing plan to be introduced in January that will once again limit New York States ' Medicaid spending growth and continue high quality care without raising taxes to cover cost, said Freeman Klopott, state budget office spokesman. According to Moodys Service, New York's Medicaid burden is set to increase 6. 6 percentage year through 2023, after five years in which Cuomo - changes reduce annual growth to 2. 2 percentage . This year's increase results from advent of $15 - hour minimum - wage for health - care workers, 12 percentage increase in long - term care enrollment and reduced federal aid. Describing situation as credit negative, Moodys continue to rate States ' credit as Aa1 stable. Gap Represents About 6 Percentage Of State's $102 Billion Portion Of Current $175 Billion Budget, Including Federal Aid.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

Sources

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

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