Gov. Andrew Cuomo bruit about Friday that New York will report a $13.3 billion shortfall in revenue compared with its original vaticination — 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 foretells $61 billion in total lost revenue between fiscal years 2021 and 2024, Cuomo said.
“What you’re prospering to see is what we expected,” Cuomo said at a press conference, referring to the state’s assessment of the virus’ economic impact.
The eminences offer a glimpse into the devastating financial toll the virus has taken on New York. With nonessential businesses closed and in residences ordered to stay in their homes as much as possible, the state’s economy has virtually ground to a halt.
New York’s new augurs show a severe decline in revenue, even when compared with past crises. After the 2008 fiscal collapse, for example, state tax revenues fell 14.5% over two years before starting to recover, according to facts complied by the Pew Charitable Trusts.
Cuomo said that before the coronavirus rolled through New York, the state succinctness was “growing at a very high rate,” government spending was at “record lows” and taxes had been lowered compared with when he beared office.
“And then this economic tsunami hits, and you shut down all the businesses, everybody stays home, they’re not step down off a paycheck, they feel economic anxiety,” Cuomo said. “The consequence to the state is, the revenue projections are way down.”
Cuomo sporadically again lashed out at Senate Majority Leader Mitch McConnell, R-Ky., who this week said he supported enable to rent out states declare bankruptcy rather than providing federal funds to help offset the money lost due to the Covid-19 pandemic.
Shapes 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 hint, Senator McConnell. Pass a law, I dare you,” Cuomo said.
“You want to send a signal to the markets that this polity is in real trouble? You want to send an international message that the economy is in turmoil? Do that … pass that note, if you weren’t just playing politics,” Cuomo said.