Cuomo Says Drastic Cuts In 2022 Budget Without $15B Federal Aid

NEW YORK CITY — Gov. Andrew Cuomo presented two outcomes for the state's 2022 budget, depending on how many billions of as-yet-undetermined federal aid flows from Washington.

One is a bleak, cuts-heavy $5 billion "worst case" scenario that cripples New York's recovery from the coronavirus pandemic.

The other is a $15 billion "fair funding" infusion that entirely covers a pandemic-related deficit, addresses years of federal assaults from Washington and helps New York's reconstruction.

"So we’re asking for fairness — fairness from Washington,” Cuomo said.

Cuomo made clear those two paths for the state's 2022 executive budget are entirely dependent on Congress and the incoming Biden administration. He added a caveat.

"The caveat is if Washington doesn't provide New York State with our fair share of funding, we're going to pursue litigation," he said.

But Cuomo's nearly hour-long presentation only provided the broad strokes on that threat, and the ins and outs of the budget. His office later confirmed the total budget, assuming $15 billion in federal aid, stood at $192.9 billion.

Cuomo, in his presentation, outlined a list of grievances and slights from Washington that harmed New York, before, during and after the coronavirus crisis. Foremost among those was a repeal of a cap on state and local tax, or SALT, that Cuomo said sapped $12.3 billion from New Yorkers every year in favor of tax cut for the wealthy.

Years of federal assaults on the state, coupled with costs from coronavirus crisis, left it with a $15 billion deficit, he said.

"New York paid a bill for COVID that no state in the nation paid for,” he said.

Cuomo said state officials crafted two versions of next year's budget. The worst-case, "drop dead" scenario envisions only $5 billion in future federal aid out of a $350 billion promised to state and local governments by President-elect Joe Biden.

That scenario could require raising income taxes up to 14.7 percent in New York City — the highest rate in the country, Cuomo said. He said other "drastic cuts" would include $2 billion from school, $600 million from Medicaid and 5 percent reductions from services statewide.

"It would hurt New York dramatically, and it would delay recovery,” he said.

Cuomo said $15 billion of "fair funding" would help pay for numerous services, including a $130 million pandemic recovery program that includes $50 million for hard-hit New York City restaurants.