Cuomo: Report Predicts $61-Billion State Deficit Over 4 Years
ALBANY, NY (WSKG) - Governor Cuomo’s budget office is due to release an updated financial report, and the numbers are grim. Cuomo says the pandemic and the resulting “economic tsunami” caused by stay at home orders has meant a 14% drop in state revenues to $13.3 billion dollars, which is projected to total $61 billion dollars over the next four years.
“And what you are going to see is what we expected,” Cuomo said.
The governor says federal aid for the states will be necessary to close the gap, and he again called out US Senate Majority Leader Mitch McConnell, who suggested that states with budget deficits due to the corona virus should declare bankruptcy. Cuomo says it’s actually illegal for states to declare bankruptcy, so he says Congress would have to pass a law to allow it.
“Pass the law, I dare you, and then go to the President and say sign this bill’,” Cuomo said. “You want to send a signal to the markets that this nation is in real trouble? You want to send an international message that the economy is in turmoil? Do that.”
The governor has said he might have to cut funding to schools, hospitals and local governments by 20%, but he said Friday no decision has been made.