"We feel that the right balance right now would be to continue fare and toll increases as scheduled because the fiscal situation is so dire," said Andrew Rein, president of the nonpartisan fiscal watchdog, Citizens Budget Commission.

"Even generous federal aid won’t solve the problem. We have a structural problem," said Andrew Rein, president of the independent Citizens Budget Commission. "The optimism does not solve our long-run fiscal crisis … we will just end up kicking the can down the road."

"We need to balance hope and opportunity," said Andrew Rein, president of the Citizen Budget Commission. "He'll have a nationwide obligation, but he understands our issues, which is a great thing for the city."

“The key is what we have here is a multi-year problem and if the only solution is to raise taxes that is not a long-term solution,” said Andrew Rein, president of the Citizens Budget Commission.

It should be noted that all fiscal year the State Division of the Budget has provided little in the way of specifics in its spending reductions, as to what areas of the budget are getting reduced, and what local governments and school districts are getting cuts and how much. A coalition of 20 advocacy groups called on the governor and the Division of the Budget to provide meaningful transparency for spending actions and decisions following a December 16 press conference by Governor Cuomo. I urged a similar disclosure process in my first column about this state budget, in April, as had the Citizens Budget Commission at the time.

The state's deficit is now at least $15 billion in the current budget year. And New York state and New York City are facing a combined budget gap of $73.3 billion over the next four years, according to a Citizens Budget Commission report.



Cuomo has been pushing for the federal government to include more relief for the state in its stimulus packages, but the most recent package does not provide as much relief as he was seeking. And even with more federal help, the Citizens Budget Commission said it would not be enough to close the gap.

"I think it’s fair to say that this is the worst fiscal crisis in generations, but it’s important to get under the hood of that and understand a little more,” said Citizens Budget Commission president Andrew Rein.

Meanwhile, budget watchdogs and others are suggesting the city explore how it can manage itself more efficiently.



“I think it’s fair to say that this is the worst fiscal crisis in generations, but it’s important to get under the hood of that and understand a little more,” said Citizens Budget Commission president Andrew Rein.



Lack of further direct aid could prompt de Blasio to revive his call for bonding to cover operations. Rein and CBC say such a move should only be a last resort and require what city officials dread — reactivation of the New York State Fiscal Control Board.

GUESTS:

Governor Pataki

Andrew Rein

Jerry Crowley

Curtis Sliwa

Andrew Rein, President of Citizens Budget Commission

-The Governor and Mayor align more and more on pandemic management, helping schools and businesses reopen and ensuring speed and equity in vaccination.

-Another federal aid package is not enough to solve all the State, City, and MTA budget problems. The Governor will propose dramatic solutions to limit spending and possibly raise taxes while trying to care for the neediest New Yorkers and prevent flight, and the Mayor will revive his attempts to issue long-term debt to fund the city’s current spending levels.

-Faced with historic budget gaps, the Legislature agrees to strategic school aid cuts and reforms that improve equity.

-The Mayor's race goes into the Democratic primary with voters choosing from a large number of candidates, who in part diverge drastically on how to manage the fiscal crisis.

“We have both strongly advocated for the city, state and the MTA to do what they can on their own, to take care of their own fiscal house, but also simultaneously said that we do need some help from the federal government, because if those don’t come together, MTA’s problems become the state’s problems and become the city’s problems,” said Andrew Rein, president of the watchdog Citizens Budget Commission.



“Either we turn the tide of the three of those, or they turn together on the worse.”

There is a debate about whether the rich will flee New York if taxes are raised. That is the wrong question, though. If the tax rate were raised to 100 percent, of course they would leave. The issue is how high a rate they will tolerate.

No one knows the answer, despite anecdotes about people moving to Florida, which has no state income tax. Indeed, the number of billionaires in New York City has increased since the first millionaires’ tax was passed in 2009. It’s apparently in the triple figures now, up from the 70s back then. It seems some folks are too busy making enormous sums of money to bother changing their tax residency, or just live wherever they want because they can

“The key is making sure that you are competitive relative to other jurisdictions,” said Andrew Rein, president of the Citizens Budget Commission.

Reinvent Albany, the Citizens Budget Commission and others took umbrage with information provided by the state in its mid-year financial plan update, including a table that showed $2.4 billion in withholdings through September. The withheld payments were arranged in 10 categories and not broken down by agency or individual program.