ALBANY, N.Y. (NEWS10) – A mid-year New York State budget update shows a $6.1 billion gap estimated in Fiscal Year 2021 and even higher deficits projected in the following years.
“This is a real sizeable deficit. And it’s caused really by spending that’s exceeding revenues,” David Friedfel, CBCNY Director of State Studies, said.
Friedfel with the Citizens Budget Commission says a major source of spending is coming from Medicaid.
A spokesperson for the state division of the budget says in 2012 the Cuomo administration implemented the “Medicaid Global Cap” to “rein in years of unsustainable spending.”
In a statement he says:
“With increased utilization and medical inflation nationally creating a structural imbalance, the Division of the Budget and the Department of Health are once again developing a cost-curbing plan…”
On Monday New York GOP Chair Nick Langworthy had this to say about the report:
“You have a government that spends too much and taxes too much and what do you know if there’s ever a downturn in the economy they’re going to have to figure out how to pay those bills,” Nick Langworthy, NYGOP Chair, said.
Friedfel says in addition to Medicaid spending there are other areas that should be looked at.
“Things like education aid that go to schools that spend well more than the state’s average and really don’t need more state aid as well as wasteful economic development spending,” Friedfel said.
The state’s plan moving forward is expected to be outlined in January when the Executive Budget is introduced.
A report from the Citizens Budget Commission last month found that the state deferred a $1.7 billion Medicaid program payment this spring that was supposed to be paid in March to April.