By Nick Reisman, includes “Last year, the financial crunch created by the COVID-19 pandemic led officials in New York to institute a hiring freeze in the state government. The state $212 billion state budget has thawed that freeze.”
By Nicole Gelinas, includes “… The fiscal implications of this upheaval aren’t good. For now, enormous federal aid insulates the city government, he notes, which can balance its budget this year.”
This is a moment in history unlike any other, and government needs to function and deliver results for the people of this state. The FY2021 Enacted Budget does that, and advances the Governor's Making Progress Happen agenda.
The governor says the state’s finances are “decimated," adding that New York is spending billions of dollars it doesn’t have in efforts to fight the coronavirus. The budget director says the expected revenue loss for the coming fiscal year will be $10 billion at a minimum. That’s in addition to a $6 billion budget gap that existed before the pandemic began.
By Reema Amin, includes “In all, New York City schools are expected to get $11.86 billion from the state plus $6.9 billion from the federal government. The state’s budget plan, which covers April 1 through March 30, 2022, would have been hard to fathom last summer, when Gov. Andrew Cuomo warned that a pandemic-fueled budget crisis could mean up to 20% cuts for education funding."
By Greg David, includes “While few New Yorkers are likely to feel much sympathy for a couple pulling in $2 million or more annually after a year in which the city lost 630,000 jobs and many face eviction and food insecurity, tax opponents argue that a loss of high-earners could blow holes into the social safety net.”
By Dan Galernter, includes “A Cato Institute paper years ago made the excellent point that the creation of the modern welfare state under FDR did more than to destroy a certain spirit of independence on which Americans prided themselves: It also destroyed countless clubs, charities, social groups, and church organizations.”
By Steven Malanga, includes “It’s now clear that de Blasio will end his tenure amid a titanic budget squeeze due to the economic slowdown caused by Covid-19. Even with President Biden promising more federal aid to cities, money from Washington to New York likely won’t come close to solving the city’s long-term budget problems …”
By Shant Shahrigian, includes “As far as elected office goes, city comptroller is far from being the most glamorous. But with the city in a precarious financial state in spite of a recent huge injection of federal cash, the role is arguably more important than at any time in recent memory.”
By Tom Precious, includes “The top fiscal adviser to Gov. Andrew M. Cuomo said there is enough money flowing into the state’s coffers to undo all the budget cuts proposed by Cuomo in January without the need for ‘any significant’ tax hikes.”
By Josh Rosenblatt, includes “Even after receiving more than $12.5B in direct federal stimulus, budget proposals show the State of New York still plans to raise taxes by at least $7B next year. … Many of these taxes are aimed at the wealthiest New Yorkers …”
By Samar Khurshid, includes “Governor Andrew Cuomo and Mayor Bill de Blasio have spent many months warning New Yorkers about cratering tax revenues because of the coronavirus pandemic … ‘The real imperative is to use federal money wisely because we're not out of the woods and we've got a long-run problem,’ said Andrew Rein, president of Citizens Budget Commission, a nonprofit fiscal watchdog group.”
By E.J. McMahon, includes “Governor Cuomo’s Division of the Budget (DOB) and the Legislature’s fiscal committees have agreed to boost New York State’s revenue projection for fiscal years 2021 and 2022 by $2.45 billion—the latest in a series of upward adjustments that have dramatically improved Albany’s short-term outlook, even as sexual harassment allegations against the governor will complicate negotiations .."
By John Damscroder, includes “… The New York pension forced FirstEnergy to disclose direct and indirect political spending along with lobbying expenses, twice a year, to keep the pension from putting the proposal to a shareholders vote. Thus, the company on the receiving end of a billion dollar Ohio Statehouse bailout the U.S. Department of Justice alleges passed with the help of $60 million in political bribes has reform imposed from New York rather than Ohio. …” (Note: Parallels with Illinois developments?)
One-hour webinar with Sheila Weinberg, Steven Malanga, Tom Kozlik, and Michael Hendrix, text intro includes “While New York City struggles to shore up its finances in the wake of Covid-19, an even larger crisis looms: the city’s long-term public pension and healthcare obligations to retirees.”
By Dave Fidlin, includes “… ‘New York City is a pretty important example of this, I’m afraid,’ Bergman said in an interview with The Center Square of his concerns. ‘If New York City is balancing its budget each year, how can that explain the accumulation of a massive negative net position?”
By Marc Joffe, includes “… New York’s $300 billion of other post-employment benefit (OPEB) debt from state and local governments exceeds $16,000 per resident, dwarfing all other states on a per-capita basis. ”
By Edward Seidle, includes “What a remarkable coincidence that New York City Comptroller Scott Stringer is looking to loosen strict rules that govern private-equity firms managing the city’s pensions when the Democrat is running for mayor in this year’s election. … Stringer is hardly the first politician to use pensions set aside to provide retirement security for government workers to further his ambitions.”
By Katie Daviscourt, includes “New York state is set to receive more than $50 billion in COVID-19 relief funds through President Joe Biden’s enormous $1.9 Trillion COVID stimulus plan. Speaker of the House Nancy Pelosi (D-CA) sent a letter to the state’s Democratic delegation Thursday, notifying the state of the generous funding headed their way.”
By Megan McGibney, includes “Fitzgerald went on to point out that the returning of funds happens each year for many of the public schools; this year, however, the pandemic has changed the landscape dramatically.”