Cuomo’s proposed budget would turn local aid temporary withholdings into 5% cut

Assuming the federal government gives New York $6 billion in aid, Gov. Andrew Cuomo’s proposed budget would convert the 20% of funding being withheld from local government into permanent 5% cuts. 

The across-the-board cut amounts to $900 million total, and bodes ill for nonprofits relying on funding from both local and state government. It is one possible strategy the state would take to reduce its $15 billion budget deficit, a figure that spans the current and next fiscal year. Cuomo has also proposed instituting a temporary wealth tax and slashing $2 billion from school funding, and about $600 million from Medicaid funding.

The governor also crafted a best-case scenario budget proposal where New York receives $15 billion in aid from the federal government, which Cuomo said would allow the state to reverse its reduced payments.

Several human services agencies spent yesterday advocating online for the state to end the 20% of funding being withheld and contract delays nonprofits faced. The withholding left SCO Family of Services with at least a $660,000 loss, Executive Director Keith Little said in a video released by a nonprofit coalition today. “The current financial trajectory is unsustainable,” he emphasized.