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

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

News 12 Staff

Feb 4, 2019, 10:24 PM

Updated 1,931 days ago

Share:

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."


More from News 12
Sources: State police are searching Massapequa Park home of alleged Gilgo Beach serial killer

Sources: State police are searching Massapequa Park home of alleged Gilgo Beach serial killer

2:33
Sun returns with highs near 70 today; temps to climb near 80 midweek

Sun returns with highs near 70 today; temps to climb near 80 midweek

Guide: School Vote 2024 budgets and tax informaton

Guide: School Vote 2024 budgets and tax informaton

1:53
East Patchogue teen files lawsuit blaming Brookhaven Town following cancer diagnosis

East Patchogue teen files lawsuit blaming Brookhaven Town following cancer diagnosis

0:19
2 people injured after car overturns on Long Island Expressway in Melville

2 people injured after car overturns on Long Island Expressway in Melville

0:21
Police: Man in critical condition after being pulled from pool in West Hills

Police: Man in critical condition after being pulled from pool in West Hills

2:24
Main Street Long Island: Showcasing the best of Glen Cove

Main Street Long Island: Showcasing the best of Glen Cove

1:09
Paws & Pals: Dogs up for adoption at Save-A-Pet Animal Shelter on May 20

Paws & Pals: Dogs up for adoption at Save-A-Pet Animal Shelter on May 20

1:46
Pizza Strong: Massive fundraiser supports family of slain NYPD Detective Jonathan Diller

Pizza Strong: Massive fundraiser supports family of slain NYPD Detective Jonathan Diller

0:30
Portion of Southern State Parkway in West Babylon reopens following car accident

Portion of Southern State Parkway in West Babylon reopens following car accident

1:55
Northwell Health Walk at Jones Beach raises money to support women and children

Northwell Health Walk at Jones Beach raises money to support women and children

0:15
Superintendent: Swastika found on classroom desk at Harborfields High School

Superintendent: Swastika found on classroom desk at Harborfields High School

0:39
Police: Man injured in Wyandanch shooting; suspect at large

Police: Man injured in Wyandanch shooting; suspect at large

1:59
Greenlawn teen arrested, accused of making ‘threat of mass harm’ at Oldfield Middle School

Greenlawn teen arrested, accused of making ‘threat of mass harm’ at Oldfield Middle School

1:45
 Missed swim lessons due to COVID-19 may be contributing to rise in child drownings

Missed swim lessons due to COVID-19 may be contributing to rise in child drownings

0:51
Vet Fest in Farmingdale aims to support, encourage veterans who need help

Vet Fest in Farmingdale aims to support, encourage veterans who need help

0:17
Authorities: George Washington Bridge climber in custody

Authorities: George Washington Bridge climber in custody

0:32
Police: 3 people arrested during State Liquor Authority compliance check at Huntington Station deli

Police: 3 people arrested during State Liquor Authority compliance check at Huntington Station deli

2:28
How did a Nassau County doctor overprescribe highly addictive pain pills, despite strict laws in place?

How did a Nassau County doctor overprescribe highly addictive pain pills, despite strict laws in place?

1:46
Hit-and-run on South Oyster Bay Rd. in Plainview leaves woman with concussion, 6 staples in head

Hit-and-run on South Oyster Bay Rd. in Plainview leaves woman with concussion, 6 staples in head