State of New York Has A $6.1 Billion Budget Gap

The State of New York’s budget is spiraling out of control and methods to curtail any spending will not solve it. What should they do? The obvious is “cut spending”, but this won’t happen. Medicaid is on autopilot and any minimal “cutting cost” measures will not show any results.

As the state Legislature prepares for the upcoming session, a $6.1 billion budget gap hangs over the lawmakers like a dark cloud. It is the state’s largest budget deficit since the Great Recession.

Much of the budget gap has been attributed to Medicaid spending – which has contributed about $3 billion to $4 billion to the deficit – as enrollment and costs of the program grow. Spending on schools is another major budget item, with the state spending $27.9 billion on school aid in 2019. The state has started to implement changes to close budget gap, including cutting a projected Medicaid spending increase in half, delaying a $2.2 billion Medicaid payment to the following fiscal year and limiting overall spending increases to 2%. But as some have pointed out, those fixes alone are unlikely to address the entirety of the behemoth budget gap. More details will likely come later this month, when Cuomo introduces his budget proposal.

Source: City & State New York

Published by Hoosier Econ

Located out of Central Indiana. Blogger of economics, politics and societal trends.

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