Cuomo seeks updated state revenue impact from COVID-19
With a fast-approaching state budget deadline on the horizion, New York Gov. Andrew Cuomo is seeking revised revenue estimates that factor in the economic realities of COVID-19.
Cuomo requested this week that State Comptroller Thomas DiNapoli revisit previous revenue estimates to reflect how the virus is negatively impacting various sectors statewide. The Democratic governor noted that global market volatility would negatively impact New York’s economic growth, particularly revenues from the state’s large financial services industry, during the 2021 fiscal year that commences April 1.
“The world has changed in just the past few days and weeks,” Cuomo said in a March 10 letter to DiNapoli. “The COVID-19 epidemic could impact virtually every sector of society with school closures, travel disruptions, empty restaurants and hotels, and canceled business meetings.”
Cuomo said in the final stages of budget negotiations with state lawmakers he would perform a risk analysis of revenue projections accounting for COVID-19. The Empire State was already facing a $6.1 billion budget gap driven largely by a $4 billion rise in Medicaid costs. The state’s consensus forecast released on March 1 estimated $700 million of additional revenue for the 2021 budget based on higher-than-expected personal income tax collections during the current 2020 fiscal year.
Cuomo requested that DiNapoli provide him with an update accessing risks from COVID-19 in revenue projections.
“Our office has received the request from the governor to review the state’s revenue projections in light of the impact of the novel coronavirus and other recent developments,” DiNapoli spokesman Matthew Sweeney said in a statement. “Clearly the outlook has changed dramatically since the release of the consensus revenue forecast by the Governor and the Legislature. We are in the process of analyzing available data and plan on delivering a timely response.”
New York’s general obligation bonds are rated Aa1 by Moody’s and AA-plus by S&P Global Ratings, Fitch Ratings and Kroll Bond Rating Agency.