New York State predicts pandemic to cause $62 billion loss by 2024

NY News

ALBANY, N.Y. (NEWS10) — The New York State Division of the Budget predicts a $64 billion dollar loss over the next four years as a direct consequence of the COVID-19 pandemic.

The news comes as part of an update on the first quarterly state budget financial plan for 2021. The plan also projects projects a $14.5 billion General Fund revenue decline and a 15.3% All Funds tax receipts decline from the Budget forecast released in February.

“New York has so far safely re-opened large portions of the economy after curbing the spread of COVID-19, and while we remain vigilant to sustain our re-opening, the pandemic has done more damage to our economy than the Great Recession and is driving a fiscal crisis.”

Robert Mujica
New York State Budget Director

The predictions have led to another call for federal funding to help take the burden from state and local governmnets.

Without federal assistance, the financial plan shows the State will reduce spending through June by nearly $4 billion compared to FY 2020. This will be achieved by freezing hiring, new contracts and pay raises, and temporarily holding back 20% of payments.

“The Federal government must put an end to its months of dithering and deliver funding to states because if they don’t the temporary withholdings turn into permanent reductions, which would have devastating impacts on schools, hospitals, police and fire departments, along with other critical services, and weaken New York State’s ability to lead the national economic recovery as the producer of nearly 10% of national GDP.”

Robert Mujica
New York State Budget Director

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