Jobs and services in jeopardy if Cuomo budget cuts stand and federal money doesn't come
Jan. 25—ALBANY — Receive from above, take from below.
Such is the essence of one theme of the 2021 state budget plan unveiled last week by Gov.
The Democratic governor's budget plan has a basic premise: Red ink will be washed away only if his request for a bailout from the federal government happens.
Cuomo's new budget assumes the federal government will give
Even if he gets that amount from
If Cuomo gets his dream bailout from
It's a time of worry for localities across the state, which, like
The reductions, according to various state budget documents, include:
—Aid and Incentives for Municipalities. It's one of the chief unrestricted funding pots from
—Aid to Localities. This is a wide-ranging portion of the budget that helps localities pay for everything from education to social services to transportation. Last June, Cuomo began withholding some of those funds promised last spring — nearly
—CHIPS. That's the
—Video Lottery Terminal payments. This is part of a deal made years ago that would have the state share part of the tax revenues it receives from racetrack-based video lottery terminal casinos. The idea was local "host communities," which include such entities as
Other cuts to localities in the new Cuomo budget include 5% across-the-board reductions at libraries and local human service providers, and a
Array of funding cuts
The pain will be real, local officials say.
Consider
"It just puts the entire burden on local property taxpayers," said
But localities are limited in how much they can raise in property taxes because of a state-imposed annual property levy cap. "The revenues have to be made up somewhere, or we have to curtail services or consider layoffs," Shaw said.
Shaw said the new Biden administration will simply have to help localities with a major stimulus plan. "Somewhere, there's got to be life jackets and rescue boats," he said.
"This aid can and must be paid to avoid municipal service reductions and job losses throughout
School aid confusion
Aid to 700 public school districts is the single-largest portion of the state budget. Cuomo wants to grow it by
The Cuomo school plan calls for canceling
Two top education policymakers are raising alarms about Cuomo's approach. Regents Chancellor
"While understanding the current fiscal realities our state is facing, we cannot balance the state budget on the backs of our students by forcing school districts to use federal funding to fill the holes left in their budgets by a decrease in state aid," the two officials said last week.
Any new federal infusion of funds to schools, they wrote, should be used as "one-shot" revenues to help districts pay for costs associated with the pandemic and student learning disruptions over the past 10 months and not as operational funding the state budget generally pays for day-to-day expenses. They noted direct state aid to schools is disproportionately hit compared with other areas in the Cuomo budget, and that
Schools overall are getting a big funding increase. But behind the curtain is a heavy reliance on
Cuomo: many positives
The Cuomo administration, in its budget documents, puts a different spin on the local government portions of the plan. It notes that there are new efforts to reduce state mandates on localities for certain services; maintenance of funding to help localities reduce duplicative services by sharing programs with government neighbors; and continuation of a program in which the state pays for cost increases in the Medicaid health insurance program.
The Cuomo budget, documents state, results in a "net positive" impact of
If Cuomo and localities are on the same page, it is the need for a big money flow from
"Without this aid, the governor said he will be forced to make dramatic cuts, which would impact county budgets, place new burdens on local taxpayers and jeopardize county health and human service programs for the New Yorkers most in need," the association of county leaders said.
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