Cuomo: 'The Actions of the Committee Could Deprive New York of Billions of Dollars in Promised Federal Aid

Governor Sends Letter to Congressional Delegation Regarding Impact of Super Committee on New York

Governor Andrew Cuomo has sent a letter to the New York congressional delegation regarding the impact of the actions of the "Super Committee" on the state. The letter is below.

Members of the New York State Congressional Delegation:

As you know, the deadline for the Joint Select Committee on Deficit Reduction (the Committee) to approve a consensus plan is this Wednesday, November 23. The actions of the committee, whether or not the members reach a consensus, will have a direct and significant impact on the finances and economy of the state of New York. I write to express my strong concern regarding the possible impacts of either a stalemate, which would trigger across the board cuts to federal programs, or any agreement that targets programs that New Yorkers and state government depend on. We cannot allow the actions of Washington to undo the progress we have made here in New York.

I recognize the fiscal challenges facing Congress at this critical moment in our nation's history. Rising federal deficits and debt pose a serious threat to the economic viability of this nation and must be addressed in a bi-partisan way with shared sacrifice coming from all Americans. Reviving America's economy and putting Americans back to work is the greatest challenge facing our nation's leaders.

Since taking office more than 11 months ago, my administration, in partnership with the Legislature, has achieved historic budgetary reforms allowing us to close a $10 billion budget gap without raising taxes or borrowing, eliminate automatic spending inflators that cost New Yorkers billions, and impose renewed fiscal discipline on state and local governments. These efforts have resulted in the significant reduction of out-year deficits.

However, as the economy has slowed and uncertainty has gripped financial markets at home and overseas, our state's fiscal situation has become more dire. We are watching the state's tax receipts and budget projections closely as the financial markets remain roiled. Now more than ever, we need to work together to come up with ways to stimulate our economy and put New Yorkers, and all Americans, back to work. A vibrant and growing economy is the best way to generate new revenues for the state and the federal government.

I write to you today because the actions of the Committee could deprive New York of billions of dollars in promised federal aid and deal a major blow to the economy and fiscal stability of this state. These are difficult times that require tough decisions. However, the burden of cuts or reductions in tax deductions must be shared evenly by all states and, as New York's representatives in Congress, I urge you to work to minimize the potential damage to New York.

I am specifically concerned that certain proposals could have a catastrophic impact on New Yorkers and our economy. Specifically, dramatic cuts to Medicaid reimbursements, transportation funding, agricultural assistance, and other federal programs could significantly widen the state's budget gap next year and into the future. In addition, proposals to eliminate tax deductions on state and local taxes as well as home mortgage interest payments could cost New Yorkers thousands of dollars a year, dealing a body blow to families across the state. This would not only take money out of the pockets of hard working New Yorkers, but also take money out of our fragile economy.

New York State receives nearly $40 billion in Federal funding on an annual basis to support critical programs and initiatives. This Federal funding represents approximately 30 percent of the State all funds budget, and supports activities including:

$2.4 billion for educational services that primarily support schools with high concentrations of students from low-income families and students with disabilities.

More than $25 billion for the Medicaid program that provides health care services and employment for millions of New Yorkers.

Nearly $4 billion for construction related to transportation and clean water infrastructure programs that ensure a safe and effective infrastructure system across the State.

These Federal resources support more than 670,000 jobs and $32 billion of wages throughout the State.

The Committee is charged with developing deficit reductions of at least $1.2 trillion over 10 years. These recommendations will have a potentially devastating impact in many critical areas.

The loss of Federal transportation aid would reduce the level of capital repairs on our system, diminishing our efforts to repair a system that is already under stress. Over 7,000 of our bridges are over 50 years old and nearly 6,200 bridges are in deficient condition. New York State ranks 46th nationally in Interstate pavement condition. In addition, the loss of this construction funding would hurt job creation in the construction industry – which is already suffering a 20 percent unemployment rate nationally.

Proportional cuts to Federal programs could result in a loss of $2.4 billion for the State Medicaid and Medicare programs. Loss of funding at this level would likely result in closure of fiscally fragile health care institutions, impact individual access to services and displace thousands of health care employees.

Across the country, leaders in government have heard the call to do more with less. We have done this in New York and Washington should do the same. However, cuts to critical programs should be made in a manner that does not undo the progress we have made at the state level or further erode the chances of a strong economic recovery. I believe certain proposals reportedly being considered by the Committee have the strong possibility of doing both. That cannot be allowed to happen.

Thank you for your committed service to this State and its people.

Sincerely,

Andrew M. Cuomo

Governor