According to a group of fiscal experts, New York State faces long-term budget problems that will be compounded by local governments facing fiscal stress, aging infrastructure and the possibility of severe cuts in federal funding.
The non-partisan State Budget Crisis Task Force issued a report on New York’s finances this week. The group, headed by former New York Lt. Gov. Richard Ravitch and former Federal Reserve Chairman Paul Volcker, the privately organized, privately funded task force has looked at the finances of six major states. The report released this week found that New York “has had a structural deficit, papered over with gimmicks, for decades.”
The report commends Gov. Cuomo for the steps he has taken to limit the growth of state spending, but the report notes that the state government must still deal with fiscal burdens that will leave it unable to make ends meet over the long term. The report also emphasized the deterioration of county, municipal and school-district finances throughout the state — pointing out that “fiscal stress runs downhill” and “local governments are badly strained in New York.”