ALBANY, N.Y. (NEWS)- New York should prepare to feel the economic effects of the coronavirus pandemic. It should be aware that negative financial consequences are likely in the 2021-2022 state budget as well as the following years, according to the state comptroller’s office.
The comptroller’s office released a report with recommendations for the state and the federal government. They say the state needs to be transparent, limit the usage of long-term loans, and begin preparation as soon as possible for the next financial crisis. For all the ongoing assistance from the federal government, the comptroller says more is needed to fill in the impending financial gap.
Even amidst the difficult challenges of the current fiscal year, we must be mindful of the longerThomas DiNapoli
term. Tax revenues are likely to be diminished by the pandemic into the next fiscal year, and
possibly beyond. The State should minimize long-term costs from any debt that might be issued
for deficit financing purposes, and make a commitment to consistently build our rainy day
reserves to help assure continuation of essential services during times of disruption in the
- In addition to negative financial impacts from the coronavirus pandemic response, the state will face increasing financial pressure for essential services related to economic hurdles and public health.
- The federal government must make more money available to support the state, local governments, and public authorities.
- Due to the tax deadline being moved to July 15, the state may have to borrow in the short-term to help with the estimated $9-10 billion in tax revenue that will be collected months later than normal.
- Any borrowing should be short-term, long-term borrowing should be a last resort.
- It’s unclear if the planned $2.5 billion in Medicaid savings will still be feasible. The state may also be called upon to help ease the financial losses of health care providers and hospitals.
- The Department of the Budget should give more frequent public updates, including economic and revenue outlook, to maintain a high level of transparency and accountability.
- The state should prepare for the next financial crisis as soon as possible to maintain essential services long-term.