Madmallard
.223 Rem
If Tom DiNapoli’s new report on state finances is any guide, Gov. Cuomo’s luck may be about to run out.
As the Empire Center’s E.J. McMahon notes, the state comptroller’s latest cash report cites tax receipts $387 million short of recent projections — and $2 billion below what Cuomo counted on in January.
Lower personal-income-tax payments are mostly to blame. That, McMahon adds, may reflect a sluggish economy or high-income households fleeing the state.Meanwhile, Albany already faces a $4 billion hole in next year’s budget. The governor’s also warning that changes in Washington, on health care or tax reform, could cost “$2.6 billion to $17 billion” more.
All of which raises a question: Why hasn’t Cuomo been squirreling extra pennies for that rainy day? As McMahon notes, the gov has raced to spend newfound cash from legal settlements with banks on things like universal pre-K, “free” college tuition, some tax cuts and plugging budget holes.
Cuomo also has skimmed $1.3 billion from a one-time $10 billion-settlement jackpot to offset recurring expenses. That kind of budgeting is what brought Gotham to the brink of bankruptcy 40 years ago.
Plus, McMahon observes, Cuomo is now using the “baseline” budget gimmickry he himself bashed, and discarded, in his first years in office. That’s clear from the state’s future-year financial plans, which assume outlays above the gov’s 2 percent cap.
Indeed, the Citizens Budget Commission confirms that the governor has already begun exceeding that 2 percent cap, though he hides it via sneaky budget tricks.
Alas, at some point, the piper will have to be paid. Cuomo has been lucky to preside over seven years of solid tax revenue (and that $10 billion-settlement windfall), enabling him to spend freely and even launch big infrastructure projects (e.g., the Tappan Zee Bridge re-do). With an election year coming up, expect the gov and Legislature to shower special interests with even more funding.
But Cuomo can’t repeal the laws of math: To avoid red ink, he’ll have to tighten his belt or raise taxes, sending more taxpayers fleeing. Buckle your seat belt, New York.
http://nypost.com/2017/10/21/signs-of-a-coming-new-york-state-budget-crisis/
As the Empire Center’s E.J. McMahon notes, the state comptroller’s latest cash report cites tax receipts $387 million short of recent projections — and $2 billion below what Cuomo counted on in January.
Lower personal-income-tax payments are mostly to blame. That, McMahon adds, may reflect a sluggish economy or high-income households fleeing the state.Meanwhile, Albany already faces a $4 billion hole in next year’s budget. The governor’s also warning that changes in Washington, on health care or tax reform, could cost “$2.6 billion to $17 billion” more.
All of which raises a question: Why hasn’t Cuomo been squirreling extra pennies for that rainy day? As McMahon notes, the gov has raced to spend newfound cash from legal settlements with banks on things like universal pre-K, “free” college tuition, some tax cuts and plugging budget holes.
Cuomo also has skimmed $1.3 billion from a one-time $10 billion-settlement jackpot to offset recurring expenses. That kind of budgeting is what brought Gotham to the brink of bankruptcy 40 years ago.
Plus, McMahon observes, Cuomo is now using the “baseline” budget gimmickry he himself bashed, and discarded, in his first years in office. That’s clear from the state’s future-year financial plans, which assume outlays above the gov’s 2 percent cap.
Indeed, the Citizens Budget Commission confirms that the governor has already begun exceeding that 2 percent cap, though he hides it via sneaky budget tricks.
Alas, at some point, the piper will have to be paid. Cuomo has been lucky to preside over seven years of solid tax revenue (and that $10 billion-settlement windfall), enabling him to spend freely and even launch big infrastructure projects (e.g., the Tappan Zee Bridge re-do). With an election year coming up, expect the gov and Legislature to shower special interests with even more funding.
But Cuomo can’t repeal the laws of math: To avoid red ink, he’ll have to tighten his belt or raise taxes, sending more taxpayers fleeing. Buckle your seat belt, New York.
http://nypost.com/2017/10/21/signs-of-a-coming-new-york-state-budget-crisis/
