'Serious as a heart attack': NY faces $2.3B shortfall; Cuomo blames tax overhaul

Posted: Updated:
MELVILLE -

New York state is facing a budget shortfall to the tune of $2.3 billion, and Gov. Andrew Cuomo argues it's because New York is paying the price for President Donald Trump's signature legislative achievement.

The governor is blaming the Republican-backed federal tax overhaul that capped state and local tax deductions at $10,000 for the shortfall. He says it's prompting many of the state's richest residents -- who pay 46 percent of the state's income tax -- to either change their primary residence or leave New York entirely.

"It literally restructured the economy to help red states at the cost of blue states," Cuomo says of the tax law.

"A $2.3 billion drop in revenues at this point is as serious as a heart attack," says state Comptroller Tom DiNapoli. He says the SALT deduction cap is hurting middle-class families, too.

"I'm concerned about my neighbors on Long Island who don't necessarily have a second residence, and they can't just flip somewhere else," DiNapoli says.

But some economists say New Yorkers are not leaving because of the SALT deduction cup, but because they've been searching for greener pastures for years as a result of the state's own tax policies.

"The problems here are caused by the governor and his administration," says Long Island-based economic analyst Marty Cantor. "It's too expensive to live on Long Island and in New York state. Taxes are too high, people are leaving. It has nothing to do with Trump."

Gov. Cuomo is now calling on his colleagues in the Democrat-controlled state Legislature to spend wisely.

"The Legislature, through the budget process, has to reconcile what we would like to do, with what we can do," he says.

The state Senate minority leader is warning Democrats against raising taxes to balance the budget. East Northport Republican John Flanagan says, "Budgeting is about choices, and it's time for Gov. Cuomo and legislative Democrats to make the right ones."

  • SlideshowsGalleriesMore>>

  • Yankees in the 2019 Playoffs

    Yankees in the 2019 Playoffs

    New York Yankees pitcher CC Sabathia throws against the Houston Astros during the 10th inning in Game 2 of baseball's American League Championship Series Sunday, Oct. 13, 2019, in Houston.New York Yankees pitcher CC Sabathia throws against the Houston Astros during the 10th inning in Game 2 of baseball's American League Championship Series Sunday, Oct. 13, 2019, in Houston.
    New York Yankees pitcher CC Sabathia throws against the Houston Astros during the 10th inning in Game 2 of baseball's American League Championship Series Sunday, Oct. 13, 2019, in Houston.New York Yankees pitcher CC Sabathia throws against the Houston Astros during the 10th inning in Game 2 of baseball's American League Championship Series Sunday, Oct. 13, 2019, in Houston.
    Photos on the field of the New York Yankees in the 2019 American League Division Series vs. the Minnesota Twins.
    Photos on the field of the New York Yankees in the 2019 American League Division Series vs. the Minnesota Twins.
  • Your Long Island Fall Fun Photos

    Your Long Island Fall Fun Photos

    Monday, October 7 2019 12:12 PM EDT2019-10-07 16:12:23 GMT
    Fall FunFall Fun
    Fall FunFall Fun
    Are you and your family doing fun things this fall? Whether you're out apple or pumpkin picking, at a farm or corn maze or just hanging around in your home or yard, News 12 Long Island wants to see your Fall Fun pics!
    Are you and your family doing fun things this fall? Whether you're out apple or pumpkin picking, at a farm or corn maze or just hanging around in your home or yard, News 12 Long Island wants to see your Fall Fun pics!
  • Your Kids Corner Photos

    Your Kids Corner Photos

    Looking for something fun to do with the kids this weekend? News 12 has you covered.Looking for something fun to do with the kids this weekend? News 12 has you covered.
    Looking for something fun to do with the kids this weekend? News 12 has you covered.Looking for something fun to do with the kids this weekend? News 12 has you covered.
    Did you do something fun with your kids this weekend? Share your adventure with us!
    Did you do something fun with your kids this weekend? Share your adventure with us!
sorry to interrupt
your first 20 are free
Access to News 12 is free for Optimum, Comcast®, Spectrum Networks® and Service ElectricSM customers.
Please enjoy 20 complimentary views of articles, photos, and videos during the next 30 days.
you have reached your 20 view limit
Access to News 12 is free for Optimum, Comcast®, Spectrum Networks® and Service ElectricSM customers.
Please login or create an account to continue enjoying News12.
Our sign-up page is undergoing maintenance and is not currently available. However, you will be given direct access to news12.com while we complete our upgrade.
When we are back up and running you will be prompted at that time to complete your sign in. Until then, enjoy the local news, weather, traffic and more that's "as local as local news gets."