Despite a record-setting economic expansion, our state is facing a $6.1 billion budget deficit. Structural cost drivers, notably Medicaid, continue to be ignored, which encourages and incentivizes New Yorkers to seek refuge in states that dont treat their residents like ATMs.
Todays budget address by Gov. Cuomo states that this year there will be no tax increases, one-shot revenues or other financial gymnastics that were common in previous years. Reform is the order of the day! As Gov. Cuomo proudly states, New York is the Progressive Capital of the Nation. The new progressive approach to education funding will be a rebalancing of Foundation Aid toward less wealthy school districts. Thats potentially bad news for Smithtown and Hauppauge taxpayers. The Medicaid funding formula will be tightened to put strong pressure on counties to be more efficient. Save money and you share in the savings; remain inefficient and youll get no help from the state as you do now.
Progressive policies created the current financial difficulties in New York States budget. I find it hard to believe that these same policies will save us this year. Stay tuned.