Gov. Andrew Cuomo (D) has warned that New York would see “tremendous tax increases” if it doesn't receive federal aid.
During his December 9 briefing on the COVID-19 pandemic, Cuomo said that without federal aid there would be “dramatic tax increases that would hurt families and hurt the economy” and layoffs of thousands of government workers. He also said that raising taxes and layoffs would not be enough to fill the budget gap without federal funding.
The governor said tax increases would probably be inevitable to help fill the budget deficit, even if New York receives federal aid. There would be “tax increases in any event,” Cuomo said, but the size of the increases would depend on the amount of federal aid given, if any.
Cuomo, New York City Mayor Bill de Blasio (D), Senate Majority Leader Andrea Stewart-Cousins (D), Assembly Speaker Carl Heastie (D), and labor leaders on December 9 sent a letter urging the state’s congressional delegation to provide aid.
“If New York State does not receive a minimum of $15 billion in aid, or if New York City does not receive a minimum of $9 billion in direct aid, then tax increases, layoffs of essential workers, and significant borrowing will all be necessary,” according to the letter.
The group also said that 9,000 workers would be laid off and subway and bus fares would be increased if the Metropolitan Transportation Authority does not receive $4.5 billion this year.
Noting that Congress is considering “$908 billion in COVID-19 relief,” the letter said it's critical that the proposal include state and local funding to prevent future economic damage to the state.
“New York is the economic engine of the United States, a fact that should be recognized in any federal legislation intended to jump-start the national economy, and no state was damaged to the extent that the federal government damaged New York,” the group said.
The federal Bipartisan Emergency COVID-19 Relief Act of 2020's summary, released December 9, states that the act's $908 billion total cost includes at least $160 billion in support for state, local, and tribal governments. It would also fund extended unemployment insurance and additional Paycheck Protection Program loan funding.
Cuomo’s office did not respond to a request for comment by press time.