Gov. Andrew Cuomo will present an austere state budget Tuesday that must address runaway pension, education and health-care costs to deal with a growing budget gap.
Details of the Democratic governor’s spending plan for the fiscal year that begins April were still unclear Monday. But he’s previously warned of “short-term pain” amid reports that some 15,000 state workers could be laid off.
A $10 billion deficit has been batted around, although Cuomo said Monday that the way the budget is accounted for should be reconsidered. He explained that costly programs such as Medicaid and education are being funded by 13 percent a year, rather than by the inflation rate, which would drop the gap to about $1 billion.
Here’s a look at the impact from what Cuomo may propose:
If the city loses $1 billion in education aid from the state — a number that’s been tossed around — that would lead to further layoffs of 15,000 teachers on top of the 6,100 already slated to lose their jobs, Mayor Michael Bloomberg said.
Cuomo is rumored to be looking to cut up to $3 billion from the state’s Medicaid program. That could ultimately force several cash-strapped hospitals in the city to close.
Albany’s budget crunch led to a loss in state MTA funding of $160 million last year, one of the factors that lead to service cuts. Cuomo could be proposing a similar reduction this year.
Cuomo may once again oppose extending the “millionaire’s tax” — a state surcharge on people who earn $200,000 or more. Having it sunset would be good news locally, as about 6 percent of the more than 3 million households in New York City make at least $200,000.