The looming threat of federal funding cuts is creating uncertainty among lawmakers working on the New York state budget.
The new state budget is due by April 1st. But amid the usual horse-trading in Albany, there are questions about what New York is facing as the deadline approaches.
“The elephant in the room tonight on anything we talk about with the state budget is that it’s never been as unpredictable, it’s never been as uncertain, it’s never been really as unknown,” she said.
It’s the first budget process for longtime legislator Pat Fahy, now in the Senate from the 46th district. At a town hall Thursday night, Fahy was joined by fellow Democrats Assemblyman John McDonald of the 108th District and Assemblywoman Gabriella Romero of the neighboring 109th.
A few dozen residents showed up to get an update on talks at a forum at the University at Albany.
Governor Kathy Hochul and Democrats who control the Senate and Assembly are working to rectify three versions of the next spending plan by the start of the new fiscal year.
On social media hours before the town hall, Transportation Secretary Sean Duffy threatened to withhold federal funding if New York does not abandon its new congestion pricing toll.
The same day, President Trump signed an executive order to dismantle the Department of Education. Among other areas, DOE handles the disbursements for federal student loans.
But chief among state lawmakers’ concerns is the U.S. House budget blueprint released in February.
Democrats say the budget blueprint includes a plan that could result in major cuts for Medicare and Medicaid.
Medicaid costs in New York are paid for through a mix of local, state and federal funds, and Fahy says the House plan is a “cloud hanging over the state budget.”
“Any cuts, serious cuts to Medicaid will have a devastating effect on the state budget and it will be next to impossible for the state to backfill those dollars,” she said.
She adds constituents are already being hurt by federal cuts.
“Few people in this state will be unaffected by these cuts. We’re already seeing farmers hurt. We will see school children hurt with free lunch programs cut. We’ll see food pantries hurt. We’re already seeing veterans, since one fifth of the veteran’s administration is expected to be cut that will affect direct services to veterans. So, there are few groups who will be unaffected and we’ll have to try to deal with it as much as possible. In the meantime, we are trying to call it out as much as possible,” she said.
Romero is in her first term and says the Assembly is hoping for the best. She suggested lawmakers could even return to Albany for a special session depending on how the federal government proceeds.
“I think at this exact moment, if those cuts do happen and we are facing a massive deficit then we’ll address it, and we’ll have to come back in June,” she said.
There isn’t really a Plan B.
“The deficits that we’re looking at are ones that are not able to be recouped by a tax the rich type proposal,” she said.
State lawmakers and the governor are also focusing on new policies that could be part of a finalized budget.
Fahy says there are four main issues to resolve: proposals to expand involuntary confinement for patients with psychiatric needs, strengthen bans on wearing masks in public, amend the state’s discovery laws, and require schools to ban cell phones from bell-to-bell.
