POUGHKEEPSIE – New York State Comptroller Tom DiNapoli told the Dutchess business community Thursday unrestricted federal aid is most likely going to be needed for the state after having evaluated first quarter numbers.
Moving into budget season and depending on how the economy behaves come May 15th, when the state is scheduled to begin regionally reopening, there could be significant last minute cuts.
“It seems to me, given the magnitude of the challenge, both for the state and for our local governments, we can’t just cut our way out of it, or, borrow our way out of it,” said DiNapoli. “We really do need additional help from Washington and that’s very, very key,” he said.
Those cuts would occur on the 15th, $1.6 billion in state agency cuts and approximately $8 billion in local aid.
The last round of federal COVID relief funding only covered localities of 500,000 residents or more. Dutchess County, for instance, was left with an 0.8 percent reduction in tax revenue, but no federal assistance because their population didn’t meet the requirements. In localities that have qualified for funding: state income tax being pushed back to July, casino revenues for the state, hotel tax and occupancy have put regional state governments in a precarious position.
From March 21st to April 25th, 1.7 million unemployment claims have been initiated in New York and the state has paid out approximately $5.8 billion in benefits.
DiNapoli said regardless of federal intervention, the goal is to get New Yorkers back to work.
“There’s no doubt in my mind, in terms of the economic devastation, while certainly we welcome and we need the federal support that we can get, the only way you’re going to get through this, is when we can have business be back open and operating – people back working, making money and paying their taxes,” said DiNapoli. “We still have a long way to go,” he said.
The comptroller said results of the upcoming weeks will have a major impact on state financial decisions moving forward.
