New York Warns of $34 Billion Budget Hole, Biggest Since 2009 Crisis

New York state’s cumulative three-year budget gap has swelled to $34 billion, rising 25% from Governor Kathy Hochul’s estimate in January as federal funding slows, Comptroller Thomas DiNapoli said.

The projected deficit as a share of total spending would be the biggest since the financial crisis in 2009, DiNapoli said in a report Friday. The shortfall is driven by spending growth in Medicaid and education, and as New York and other states grapple with billions of dollars in cuts to safety-net programs from President Donald Trump’s budget and spending bill.