New York Faces $59 Billion Revenue Shortfall
Gov. Cuomo says services will be cut and taxes will increase if Congress doesn’t pass another relief package

ALBANY, N.Y.—New York governments and authorities are projecting $59 billion of revenue shortfalls through 2022 because of the continuing coronavirus crisis, one of the deepest funding holes of any state.

Gov. Andrew Cuomo, a Democrat, said services will be cut and taxes will increase if Congress doesn’t pass another relief package—which Democrats say should include direct aid to states and cities hit by the pandemic. Mr. Cuomo said recently that he will postpone decisions in the hope that Democrats make gains on Election Day Nov. 3.

New York reported more than 32,000 deaths due to the coronavirus, and the pandemic decimated public finances. New York’s state government lost an estimated $14 billion in the current fiscal year and $16 billion in the coming fiscal year. Transportation authorities around New York City expect to take in $15 billion less revenue due to drops in subway, train and air passengers. And New York City and other local governments will be grappling with $13.5 billion in shortfalls over the next two years, Mr. Cuomo’s office estimates.

While governments across the country are feeling the hit from the virus, the situation in New York is worse than other places. Moody’s Investors Service is forecasting the fiscal shock to the state government will be $29 billion through the end of the 2022 fiscal year. That is 1.9% of gross state product, which is above the national average, said Moody’s economist Emily Mandel.

New York Continues to Send More Federal Tax Dollars to Washington Than It Gets in Return
State Ranks 50th in Total Balance of Payments; Received Only 90 Cents on Every Dollar Paid to Washington
January 14, 2020

New York paid $26.6 billion more in taxes to the federal government in federal fiscal year (FFY) 2018 than it got back in federal spending, ranking it last among the states, according to a report released today by State Comptroller Thomas P. DiNapoli.

“For every dollar New York generates in tax receipts it receives 90 cents back in federal spending, compared to the national average of $1.21,” DiNapoli said. “We’re already getting less from Washington than what we give, which makes the upcoming 2020 Census so critical. New York must do all it can to ensure a complete and accurate count of its residents to maximize our population count, which impacts our federal aid and representation in Congress.”