State of the State: what Cuomo plans to budget for

Local News

ALBANY, NY – Now that Governor Cuomo has delivered his annual State of the State address, the next step is figuring out how to pay for some of the proposals.

NewsChannel 34’s Corina Cappabianca has more on what to look out for in his executive budget.

<((Andrew Cuomo, Governor))
Today we face a 6 billion dollar gap attributable largely to our Medicaid cost.

And it’s an issue the state will need to deal with this session.

In March the state deferred a 1.7 billion dollar Medicaid payment into the next fiscal year.

David Friedfel with the Citizens Budget Commission says moving forward it will be important for the state to further control spending.

((David Friedfel, CBCNY Director of State Studies))
Revenues are coming in on target or above target so the revenues are coming in. It’s just that spending is exceeding the budget and it’s exceeding revenues.

Friedfel says the state should also work to build up its rainy day reserves.

((David Friedfel, CBCNY Director of State Studies))
we’re about ten years into an economic expansion, the longest one since economists have been recording them.

But he says when it comes to how much is in reserves:

((David Friedfel, CBCNY Director of State Studies))
The state has about 2.5 billion dollars in their rainy day reserves and a recession would likely reduce revenues by about 34 billion dollars.

Friedfel also cautions against overestimating how much a legalized marijuana industry could bring in if it were approved.

((David Friedfel, CBCNY Director of State Studies))
so we’ve looked at other states and it takes most other states about a year and a half and two years before they have a mature recreational marijuana market and when revenue really starts to come in.

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