ALBANY, N.Y. — The coronavirus pandemic has caused “extraordinary economic challenges” in New York with “punishing, still-evolving” impacts on public health, jobs, the economy, and state finances.
As a result, the enacted state budget leaves “greater uncertainty” for school districts, health-care providers and local governments this year than ever before, according to a report that New York State Comptroller Thomas DiNapoli released Wednesday.
“The executive and legislature passed a budget under very difficult circumstances to address our immediate needs, but we must be mindful of the bigger picture. Tax revenues will be substantially lower in the near term because of the pandemic, and likely well beyond. The state should minimize long-term costs from any new debt and commit to building up our rainy day reserves. The road ahead is a challenging one and will require a long-term strategy,” DiNapoli said. He is asking for help from the federal government.
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DiNapoli’s report notes the state has delayed the filing deadline for 2019 tax returns for individuals and corporations from April 15 to July 15. The comptroller’s office estimates the amount of overall tax receipts delayed from April to July could be as much as $9 billion to $10 billion, depending largely on how many taxpayers choose to delay their filings.
While the state received almost $3.8 billion in Coronavirus Relief Fund resources earlier this month, the total amount of federal assistance available to help address cash-flow and budget-balancing needs “remains to be determined,” DiNapoli said.
The final state budget also included an additional $21.4 billion in total new and increased state-supported debt authorizations, including $11 billion for cash flow or deficit financing purposes. While short-term borrowing to offset delayed revenues may be appropriate, the comptroller “urges caution” in any longer-term borrowing for operating costs.
