Host of issues may KO timely state budget
ALBANY — Economic recovery from the COVID crisis, swirling scandals, federal aid and a host of contentious proposals to raise taxes on the wealthy and fund excluded workers are complicating budget negotiations as the state’s fiscal year draws to a close this week.
Legislative staffers and the Cuomo administration are currently knee-deep in negotiations, attempting to find common ground on a number of big-ticket proposals as part of a roughly $200 billion budget, with the state seeking a path forward in the wake of a deadly pandemic, sources said.
Talks ahead of the April 1 fiscal deadline have been overshadowed as Gov. Cuomo faces a growing number of sexual harassment claims, an impeachment inquiry, calls for his resignation and a federal probe into allegations officials masked the true death toll at nursing homes during the COVID crisis.
Complicating matters further is a more than $12 billion infusion of federal COVID relief funds and discrepancies over a number of issues including whether to increase taxes on the state’s wealthiest residents to boost spending on education and health care and funding for immigrants and other workers excluded from COVID relief, and how to implement a mobile sports betting program.
The Senate has also proposed lifting a moratorium on downstate full-service casinos, which could fast-track the approval process for gambling centers near the city.
Raising taxes on the state’s wealthiest residents remains one of the most controversial topics as budget bills are drafted and advanced in the coming days. Lawmakers in both the Senate and Assembly have pitched a plethora of tax increases that would raise about $7 billion for new spending on education, health care and social services.
Cuomo has expressed skepticism about broad tax increases, arguing that federal funds have made up much of the current budget gap and that the wealthy would simply move to other states.
As negotiations grind on and the deadline looms closer, only one budget bill was introduced as of Tuesday evening. It remained unclear if legislative leaders and the governor’s office will be able to overcome their differences by Thursday.
Without a rush order from the governor, known as a “message of necessity,” lawmakers could find themselves working through the Easter weekend to complete the process.