Tax Increases May Be in NY’s Future: Governor Cuomo
Even with the more than $12 billion in expected aid from Washington, Governor Andrew Cuomo says New York will still face budget shortfalls in the coming year.
The $1.9 trillion COVID-19 relief plan passed by the Senate on Saturday includes $12.569 billion for New York State. Even with the expected funds, New York would still face a significant gap according to the Governor.
“Don’t get me wrong, the $12.5 billion is very, very helpful,” Cuomo said. “We needed $15 billion in my opinion, so we do have a gap there and tax increases are on the table.”
The deadline for lawmakers to approve New York's 2021-2022 fiscal budget is April 1st according to WIVB-TV, and while the aid from Washington will help it will fill the hole created by the pandemic.
“It means it is now a possible budget, not an easy budget,” Cuomo said. “Why? You still have tremendous needs that COVID created. Rent needs, assistance needs, daycare needs, job and employment needs, so you have tremendous needs.”
Closing the budget gap could require billions in funding cuts to education, health care, and social services; raising income tax; and significant borrowing.
Additional aid is expected for some municipalities in New York State, additional aid equaling about $6 billion for New York City.
Increased spending throughout the state including the Western New York area on the fight against coronavirus and a drop in revenue connected to the pandemic put New York in an economic bind.
“We took a beating and we’re going to have to build back,” Cuomo said. “But with this federal aid, it’s a big piece towards that role.”
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