New York’s budget is in trouble for the upcoming fiscal year, even with more than $12 billion in expected federal aid, Gov. Andrew Cuomo warned Sunday.
The $1.9 trillion COVID-19 relief plan passed by the Senate on Saturday includes $12.569 billion for New York State. Even with the expected funds, New York would still face budget issues, Cuomo said.
“Don’t get me wrong, the $12.5 billion is very, very helpful,” Cuomo said. “We needed $15 billion in my opinion, so we do have a gap there and tax increases are on the table.”
Lawmakers in New York have until April 1 to approve a fiscal budget for 2021-22 and it won’t be an easy budget, Cuomo said.
“It means it is now a possible budget, not an easy budget,” Cuomo said. “Why? You still have tremendous needs that COVID created. Rent needs, assistance needs, daycare needs, job and employment needs, so you have tremendous needs.”
Additional aid is expected for municipalities in New York, including more than $6 billion for New York City.
Increased state spending on the coronavirus fight and a drop in revenue connected to the pandemic put New York in an economic bind.
“We took a beating and we’re going to have to build back,” Cuomo said. “But with this federal aid, it’s a big piece towards that role.”