Cuomo: NYS Budget Faces $13.3B Shortfall
GWEN EVERETT Crain’s Health Pulse April 24, 2020
New York is expecting a $13.3 billion budget shortfall as a result of Covid-19, Governor Andrew Cuomo said.
That’s a 14% decline from the executive budget the Governor put forward before the pandemic. Over fiscal year 2021 to 2024, Cuomo said the state expects to lose $61 billion.
Cuomo has long said that the Covid-19 crisis will wreak havoc on state finances. Friday he put a dollar value on that damage. New York was facing a $6 billion budget gap before the pandemic hit the state, but Cuomo blamed the shortfall on Covid-19.
“The state finances were very, very strong and then this economic tsunami hits and then you shut down the businesses, everybody stays home,” the governor said. He’s made repeated calls on the federal government for more aid to states in their federal relief packages, a plea that’s largely gone unfulfilled.
On Wednesday, Kentucky Sen. Mitch McConnell said states facing financial distress as a result of coronavirus should declare bankruptcy.
Cuomo corrected the Bluegrass legislator on Friday.
“Legally, a state can’t declare bankruptcy,” Cuomo said. “It’s your suggestion Senator McConnell, pass the law. I dare you.”