Press Mention

With Washington Focused on Replacing RGB, Is Cuomo’s Budget Strategy Still Viable?

Spectrum News

September 22, 2020

“The federal government should provide New York with additional aid, but the time for waiting has passed – we’re halfway through the state fiscal year,” David Friedfel, the Director of State Studies for the Citizens Budget Commission told Spectrum News. “The state needs to release a plan of how it will balance this year’s budget, and do so shortly. School districts, localities, Medicaid providers, and other state vendors need to be able to plan for the remainder of the year.”

“The governor was clearly counting on having some money from the feds. Here we are looking at the final week in September and now Congress is in this state of red-hot polarization,” E.J. McMahon, founder and senior fellow at the Empire Center for Public Policy told Spectrum News.

Underscoring McMahon’s point, House Democrats are now looking to postpone a vote Tuesday to keep the government funded through December 11. While the postponement on this continuing resolution isn’t directly related to stimulus funding, it speaks to the hardening of positions in Washington.

Based on the parties’ divergent positions, any deal on stimulus would have required serious, meaningful compromise. That is far less likely now.

So, what are the governor’s options?

The CBC outlined a plan which will allow the state to balance this year’s budget. The plan includes both tax cuts and leveraging rainy day reserves. It also changes how capital expenses are financed, makes limited cuts in school aid that would only impact wealthy districts, delays tax cuts, and suspends certain tax exemptions.

“By (the state) announcing its intentions, it will allow New Yorkers to plan and adjust as necessary,” Friedfel told Spectrum News.