Press Mention

Cuomo's worsening budget woes now our problem

Crain’s New York Business

November 06, 2019

There is no recession in sight and the New York State budget is already in the red. Just think what will happen when the economy does falter. And it’s all Gov. Andrew Cuomo’s fault. Let’s see how he fixes it, if he does.

Here’s the story in a nutshell. With the state’s fiscal year nearing an end in the early spring, Medicaid spending was about $2 billion over budget. Rather than deal with it, Cuomo delayed paying health care providers until the start of the new fiscal year in April. This kept the budget in balance for last year. This is called ``kicking the can down the road.’’

Now, Medicaid spending in the current fiscal year is on track to exceed the target by $3 billion to $4 billion and as a direct result the state budget is showing a projected budget deficit that will need to be dealt with. The governor says he’s going to delay Medicaid payments again (kicking the can down the road again) and he is looking at cuts as well to end the year without a shortfall. In all, the Citizens Budget Commission said this week, state Medicaid spending over the next four years will cost $13 billion more than projected.

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