Transition plan
Promise of federal pandemic aid contained in recovery part of Biden-harris package
New York could see relief with Biden entering White House in January./
Gov. Andrew M. Cuomo has made it no secret that he is waiting on the federal government to provide financial relief to state and local governments before taking an ax to the state budget.
New York, and other state and local governments, could now see relief with President-elect Joe Biden and running mate California Sen. Kamala Harris entering the White House in January. The Biden-harris transition plan was unveiled recently on the team’s Build Back Better website, and among the solutions includes a promise of federal aid to local governments.
Among the efforts included in the economic recovery portion of Biden's transition plan was providing “state, local and tribal governments with the aid they need so educators, firefighters, and other essential workers aren’t being laid off.”
For months, Cuomo and other elected officials facing deep deficits due to pandemic response have called on the federal government to pass a stimulus package that includes fiscal aid for state and local governments.
Republican lawmakers in Washington, D.C., however, have blocked those efforts, arguing that the aid would amount to a “blue state bailout” and claiming state officials’ have mishandled their budgets. Democratic and Republican-led states have expressed need for federal relief, noting that the shut down economy wreaked havoc on sales tax revenues, a key source of revenue for governments.
The changes Biden plans, however, hinge on the fate of the U.S. Senate, which may not be decided until Jan. 5, when Georgia will have two run-off elections for its Senate seats.
A Democratic-majority Senate would hand the party control of the Congress and the White House, giving Biden a smooth runway for his agenda. A Republican-led Senate would necessitate bipartisan cooperation to pass legislation and give Republicans opportunity to block bills and judicial and cabinet appointments.
New York is anticipating a nearly $15 billion decline in revenue this year, including more than a 15 percent decline in tax receipts from the forecast made in February, according to the state Division of the Budget’s midyear fiscal outlook. Cuomo’s administration predicts a loss of nearly $63 billion through fiscal year 2024 due to COVID -19.