Gov. Andrew Cuomo is not planning to make any “irreversible” cuts to the state budget over the next month after hopes of a relief package from the federal government were dashed this week when simulus talks stalled between President Donald Trump and Congress.
Trump, in a series of tweets Tuesday, said he wanted to pause negotiations on a federal stimulus package, including aid for state and local governments, until after Election Day.
When asked Wednesday if that would mean significant cuts to the state budget over the next month, Cuomo said he’s not planning to make any changes to the state’s finances until there’s a result in this year’s elections.
“I’m not going to do any damage to the state’s economy until you tell me that is the last resort,” Cuomo said.
Cuomo said he’s banking on at least one of two possible outcomes in November: that former Vice President Joseph Biden win the presidency, or that Democrats take control of the U.S. Senate and maintain control of the House.
Either scenario, Cuomo said, would give Democrats more leverage to approve a stimulus package early next year that would provide billions of dollars in aid to state and local governments.
“You’re going to know in less than a month,” Cuomo said. “Any action you take will cause damage. So I’d rather wait to find out what the facts are before we make such an impactful decision.”
“If we instituted a tax increase, and we cut expenses, and we do borrowing, that damage is irreversible.”
Cuomo has warned since May that if New York doesn’t receive a significant amount of aid from the federal government, the state may have to cut funding for education, health care, and local governments. Some spending has already been reduced in recent months.
New York is currently facing a budget deficit of about $14 billion this year, and $30 billion over the next two years. That’s not counting the $9 billion deficit projected for New York City, and gaps in funding for state agencies.
Overall, Cuomo has asked Congress to provide New York with about $50 billion in federal funding over the next two years to bridge the state’s budget gap.
But that hasn’t happened. Republicans in the U.S. Senate have blocked Congress from diverting funds to state governments, saying those costs shouldn’t be borne by the rest of the country. Senate Majority Leader Mitch McConnell has likened the idea to a “blue state bailout.”
Some Republicans in New York, like Republican Chairman Nick Langworthy, have said that New York’s deficit is partly a result of the state’s spending patterns, and shouldn’t be fixed by the federal government.
