New York, NY—New York Governor Andrew Cuomo will be presenting his 2022 Executive Budget from the State Capitol on Tuesday, January 19 and political observers, the business community and New Yorkers throughout the city and the state will be waiting to learn how much of a budget hole the state will face almost one year since the start of the coronavirus pandemic.
At one point, particularly in March 2020, the Governor and state officials said that the state budget hole could be as high as $8 billion. But the first tranche of coronavirus relief funding later that month, combined with better-than-expected tax revenue, as detailed by Thomas DiNapoli, the state's comptroller, in November, cut the budget shortfall from the 2019-2020 budget year from $8 billion to $4 billion.
As previously reported, the approximately $900 billion coronavirus relief bill enacted in December last year provided almost $54 billion to New York. On top of that, the recently announced $1.9 trillion American Rescue Plan announced by President-elect Joe Biden is expected to direct more than $50 billion to New York.
That may mean that Biden’s relief plan could help plug New York’s budget hole. But even with that possibility, there are calls among community-based groups, unions and elected officials who have been pressing Governor Cuomo to raise taxes on people earning income more than $1 million annually.
Just two weeks ago outside Governor Cuomo’s office, a new coalition announced their support for the Invest in Our New York Act, a package of six bills being introduced in New York’s Assembly and Senate in order to raise close to $50 billion in order to fund public education, jobs, housing and healthcare.
Cuomo has recently said publicly that he may be open to tax hikes to close New York’s budget hole, but that he’s withholding action until the Congress takes up President-elect’s $1.9 trillion coronavirus relief bill.
Governor Cuomo’s Budget Division spokesman, Freeman Klopott, noted that without federal funding, the state will consider spending reductions, borrowing and revenue increases to close the deficit but didn’t mention tax increases.