Governor Cuomo and Labor Leaders Call on Congress to Provide $59 Billion to Address Catastrophic Budget Shortfalls Resulting from COVID-19 Pandemic

 

New York State and New York City Require Lifesaving Injection of Federal Funding to Avoid Setbacks to Vital Infrastructure Projects that Provide Employment for Thousands of Workers

Call on Congress to Repeal SALT

Cuomo, Labor Leaders: "Even if state and local governments cut expenses, increase taxes, and reduced services, the revenue shortfall would still be in the billions of dollars. Moreover, forcing state and local governments to take such actions would only further the pain and extend the period of time for the nation's economy to recover." 

  Governor Andrew M. Cuomo and prominent New York labor leaders today called on Congress to provide $59 billion to address catastrophic budget shortfalls that impact the jobs and livelihoods of thousands of workers in the state. The governor and labor leaders sent a letter to federal representatives enumerating the critical infrastructure projects that would be impacted without federal funding and the hospitals, schools and institutions that would be supported by it. New York State, New York City and other local governments face huge shortfalls due to the ongoing COVID-19 pandemic. 

The governor and labor leaders also called on Congress to repeal the tax change that eliminated the State and Local Tax Deduction (SALT).

New York State requires $30 billion during the current fiscal year and next to avoid massive disruption. New York City requires $9 billion, local governments outside of New York City require $4.5 billion, the MTA requires $12 billion, and the Port Authority of New York and New Jersey requires $3 billion. Federal funding would support:

• Rebuilding JFK and LaGuardia Airports, which employ thousands of private sector workers
• The MTA's $51 billion capital plan
• East Side Access and new Penn Station

The full letter is available below: 

Dear Federal Representative:

Due to the COVID-19 pandemic and its economic impact, New York State is in an impossible financial situation.

State and local governments are facing an approximate $59 billion shortfall this year and next. New York City, the Metropolitan Transit Authority, the Port Authority of New York and New Jersey individually all face unmanageable shortfalls. Likewise, private sector businesses have seen lost revenue and tens of thousands of jobs lost. 

There is no combination of state efforts that will address this financial crisis without federal assistance. Even if state and local governments cut expenses, increase taxes, and reduced services, the revenue shortfall would still be in the billions of dollars. Moreover, forcing state and local governments to take such actions would only further the pain and extend the period of time for the nation's economy to recover. Virtually all economists agree that forcing state and local governments to lay off employees and reduce services will negatively impact the national recovery. We saw that with the last fiscal crisis in 2007-2009, and we know that it will play out again.

Much damage has been done by this federal administration - policies like the SALT tax "reform" that increased taxes on New Yorkers, and discriminatory policies that tout "savings" while further marginalizing vulnerable New Yorkers. The federal administration has already achieved many of its political priorities in prior legislation passed in response to COVID. We cannot allow another piece of legislation to pass without protecting New Yorkers.

New York State requires $30 billion in funding in the current fiscal year and next to avoid massive disruption. Likewise, New York City requires $9 billion, local governments outside of New York City require $4.5 billion, the MTA $12 billion and the Port Authority $3 billion. The Port Authority's projects rebuilding LaGuardia and JFK Airports are currently employing thousands of private sector construction workers. The MTA's $51 billion capital plan will be on hold, and East Side Access and a revitalized Penn Station will be lost, maybe forever. We must not lose these jobs and these projects - they are necessary to cementing New York's economic future. Hospitals, schools and public employees have done heroic work during Covid and must now be protected, especially as we reopen schools and anticipate additional health challenges in the Fall.  The legislation must also repeal the damaging and offensive SALT tax "reform," which cost the people of the State of New York as much as an additional $15 billion each year.