New York will recompute its tax projections as the coronavirus threatens to wreak havoc on its key banking and tourism industries, Gov. Andrew Cuomo announced Tuesday.
Cuomo’s request to the Empire State’s comptroller, Tom DiNapoli, to again analyze the state’s projected tax revenues comes as the number of COVID-19 cases in the state hit 173.
“We just did revenue projections. The world has changed since then,” Cuomo said.
Cuomo’s move comes just a week after Albany budget forecasters estimated the state would generate $700 million in additional revenues thanks to Wall Street’s windfall last year, potentially helping to offset New York’s $6 billion state budget deficit.
But that was before the stock market tanked and Westchester County became a hot spot in the global coronavirus outbreak, which could limit bank and Wall Street profits and keep tourists at home.
The state budget is heavily dependent on tax revenues from the wealthiest New Yorkers as well as Wall Street, including bonuses tied to what had been a booming stock market.
The requested reappraisal comes as Cuomo and the state Legislature hammer out the state’s upcoming budget, which is due April 1.
The governor had proposed a $178 billion executive spending plan before the COVID-19 epidemic hit.
“Next year’s revenues have to take a hit and what should we be doing in terms of a rainy day fund, etc., this year for next year,” Cuomo said on WAMC radio Tuesday morning. “Forget just the stock market and the financial bonuses. Reservations at hotels are being canceled, businesses are canceling their meetings, conventions are canceling, restaurants are empty, tourism is way down.”
Cuomo added: “You may be looking at a nine-month economic slowdown across the board. This is a global economic situation now.”