Financial Outlook - New York State faces a potential $34 billion deficit over the next three years, the largest since the global financial crisis [1][2][5] - The current fiscal year is performing slightly better than projected, with revenues exceeding expectations in the first quarter by approximately $580 million [3][5] - Federal funding cuts, particularly in healthcare, are worsening New York State's finances, with an immediate impact of about $750 million in this year's budget [1][4] - Healthcare alone could face at least $3 billion in cuts next year, potentially increasing the budget gap to over $7 billion [6] Risks and Uncertainties - The $34 billion deficit does not fully account for the restructuring of the federal-state relationship and its negative impact on federal receipts, especially for healthcare [5] - There is uncertainty regarding the full impact of federal changes, with estimates suggesting the New York healthcare system could lose about $13 billion a year [7][8] - One million New Yorkers could lose healthcare coverage, potentially increasing costs due to emergency room visits [8][9] - Long-term cuts could amount to tens of billions of dollars across various sectors, including nutrition programs (SNAP), energy programs, and infrastructure projects related to climate change [10] Potential Solutions and Considerations - New York State needs to start planning now to avoid changes that could negatively impact New Yorkers, including considering both cuts and revenue impacts [7] - The state may need to consider raising taxes in coming years, but there are concerns about taxpayer migration [11][12] - The budget negotiation between the legislature and the governor will be tougher, focusing on spending and revenue questions [14] - There is a need to explore smarter spending strategies to save money without hurting services or people, such as comptroller audits on the Medicaid program [17]
NY Comptroller DiNapoli Addresses Budget Gap, Cuts
Bloomberg Televisionยท2025-08-28 19:00