Cuomo Budget Would Cut NYC Aid by $4.8 Billion, DiNapoli Says

  • Medicaid and City University of New York would be hit hardest
  • New York City also faces increased risk of economic downturn

New York Governor Andrew Cuomo speaks on Oct. 16, 2014, in New York City.

Photographer: Spencer Platt/Getty Images

New York Mayor Bill de Blasio got support from the state’s chief fiscal officer for his contention that Governor Andrew Cuomo’s proposed budget would cost the city $4.8 billion in the next four years.

While the city’s record employment and economic growth have created a surplus this fiscal year, Comptroller Thomas DiNapoli said that the governor’s budget poses the biggest risk to the city’s finances, especially with the increased possibility of a slowdown. Cuomo proposals, which include forcing the city to pay more for Medicaid and for the City University of New York, amount to more than 1 percent of its $80 billion-plus budget.

De Blasio and Cuomo have been feuding since the mayor began his term in January 2014, with conflicts over school governance, affordable housing, homelessness and police practices. The battle reached a peak in June when the mayor called reporters into his office and described the governor as more influenced by political calculations than the city’s well-being. 

“The largest and most immediate risk facing the City’s budget is the governor’s executive budget,” the report states. The increased costs to the city from Cuomo’s budget would total about $1.2 billion a year over the next four years, DiNapoli said in a report released Monday.

Cuomo has said that administrative efficiencies he’s seeking for Medicaid and the university, which serves more than 500,000 full and part-time students at 24 campuses, would make up for aid cuts. De Blasio has vowed to hold the governor to that promise.

Although jobs in the city increased by 120,000 in 2014 and by more than 100,000 last year, “economic growth in China has slowed, affecting economies around the globe and precipitating a sharp drop in the financial markets,” DiNapoli said. “Changes in the business cycle are inevitable.”

While the mayor presented a balanced preliminary budget for 2017, the city has forecast a $2.3 billion deficit in 2018, increasing to $2.9 billion the following year, without factoring in the governor’s proposed aid cuts, DiNapoli said.

Before it's here, it's on the Bloomberg Terminal.