Monday, November 21, 2011

Cuomo: 'New York Could Lose Approximately $5 Billion in Federal Funding Over 10 Years'

Statement by Governor Andrew Cuomo

"Today, I held a conference call with my Council of Economic and Fiscal Advisors to discuss the potential negative fiscal and economic impact of the actions, or inaction, of the Congressional Joint Select Committee on Deficit Reduction. Washington's inability to get its fiscal house in order and work in a bipartisan fashion to create jobs represents a fundamental failure of government that has bred frustration and anger among the people and prolonged the worst economic conditions since the Great Depression.

While Washington has yet to make up its mind about what cuts it will make, this state government is analyzing potential impacts on the budget and the economy. If the committee fails to reach an agreement and Congress moves forward with its so-called 'sequestered cuts,' the Budget Division estimates that New York could lose approximately $5 billion in federal funding over 10 years beginning this coming fiscal year. This does not account for additional revenue losses from jobs losses and Wall Street declines. These events, combined with a stagnant national economy and the expanding fiscal crisis in Europe that has led to a sudden and severe decline in revenues for the state, have dramatically changed the fiscal course of the state.

I have asked my Council of Economic and Fiscal Advisors to work with senior members of my administration to draw up an expedited job creation and fiscal stabilization plan. This proposal would be based on the reality that the best way to generate revenue for the state and revitalize our economy is to create jobs."

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