Cuomo seizing control of NY state budget amid coronavirus’ economic crunch
ALBANY — With revenues torpedoed by the coronavirus pandemic, Gov. Andrew Cuomo will seize control of the state budget for quarterly tweaks through an obscure clause quietly created last year.
“We know the revenues are down, [but] we don’t know how much, we don’t know when the economy comes back, we don’t know the rate at which the economy comes back and we don’t know what Washington may do to address this situation in the future, if anything,” Cuomo told reporters during a press conference at the state Capitol on Thursday.
“So, you don’t know, you don’t know, you don’t know and you don’t know,” he summarized. “But you have to do a budget with all those unknowns.”
The move comes as Cuomo’s office forecasts the coronavirus may cost the Empire State as much as $15 billion in revenues during its next budget, dramatically exacerbating the state’s precarious finances.
Cuomo is able to take the reins via the state Division of the Budget thanks to a clause baked into the Fiscal Year 2020 budget, allowing the DOB to take over in the event of dire financial straits.
“We’re going to adjust the budget through the years to reflect the actual revenue,” he said. “We’ll say on day one, ‘OK, we intended to give you $100. We don’t have $100, so we’re going to give you $95. But I can only give you $95 if I get $95. And I’ll let you know quarterly.’
“And that’s, frankly, the only way you can do this budget when you have so many unknowns.”