Gov. Andrew Cuomo said Friday that New York will report a $13.3 billion shortfall in revenue compared with its original forecast — representing a 14% decline in the state’s projected receipts.
The Empire State, which has been hit harder by the coronavirus pandemic than anywhere else in the U.S., currently forecasts $61 billion in total lost revenue between fiscal years 2021 and 2024, Cuomo said.
“What you’re going to see is what we expected,” Cuomo said at a press conference, referring to the state’s assessment of the virus’ economic impact.
The projections offer a glimpse into the devastating financial toll the virus has taken on New York. With nonessential businesses closed and residents ordered to stay in their homes as much as possible, the state’s economy has virtually ground to a halt.
New York’s new forecasts show a severe decline in revenue, even when compared with past crises. After the 2008 financial collapse, for example, state tax revenues fell 14.5% over two years before starting to recover, according to data complied by the Pew Charitable Trusts.
Cuomo said that before the coronavirus rolled through New York, the state economy was “growing at a very high rate,” government spending was at “record lows” and taxes had been lowered compared with when he took office.
“And then this economic tsunami hits, and you shut down all the businesses, everybody stays home, they’re not getting a paycheck, they feel economic anxiety,” Cuomo said. “The consequence to the state is, the revenue projections are way down.”
Cuomo once again lashed out at Senate Majority Leader Mitch McConnell, R-Ky., who this week said he supported letting states declare bankruptcy rather than providing federal funds to help offset the money lost due to the Covid-19 pandemic.
States can’t currently declare bankruptcy, and Cuomo at the press conference challenged McConnell to try to pass a law allowing them to do so.
“It’s your suggestion, Senator McConnell. Pass a law, I dare you,” Cuomo said.
“You want to send a signal to the markets that this nation is in real trouble? You want to send an international message that the economy is in turmoil? Do that … pass that bill, if you weren’t just playing politics,” Cuomo said.
Published at Fri, 24 Apr 2020 18:45:58 +0000-New York will suffer $13.3 billion revenue shortfall from original forecast due to coronavirus, Cuomo says