Albany has it tough this year. As a result of declining revenues, the state faces a $4.4 billion budget deficit that Governor Andrew Cuomo hopes he can eliminate by curbing spending growth to 1.8 percent and creating new revenue sources. Changes to federal health care funding may cost the state another $2 billion, and Albany is bracing for more federal cuts down the line. And then there’s fear that the federal tax bill, which reduces state and local tax deductibility, will cause wealthy residents to leave the state, resulting in declining tax revenue.
In his State of the State address on January 3, Cuomo emphasized the federal threats to New York. He also raised concerns about the state’s homelessness crisis.