Cuomo & New New York Debt

Cuomo Accepts US Taxpayer Bailout Leaving Devastating 2012 $15 billion dollar Deficit

By: Mike Madigan

A funny thing happened during all the recent state run media celebration over the “responsible” Cuomo budget. The media chose not to ask the basic questions and instead chose to report exactly what the State asked them to report.

The state run media alleged that Cuomo cut spending by approximately 2.7% or approximately $3.6 Billion dollars. Let the celebrations begin right – as per the media we just solved the $10 billion deficit problem.

Timeout.  $3.6 billion erases a $10 billion deficit – hmmm, anyone else curious other than me how we arrive at that math? The answer is that rather than choosing responsible cuts, Cuomo chose to accept a one time bailout by United States taxpayers of $6.4 billion dollars. Cuomo did not erase the $10 billion deficit. Cuomo actually chose not to address a majority of the out of control spending, and instead chose to accept a one time US Taxpayer funded bailout through misuse of the Obama stimulus funds.

The questions the media failed to ask are:

1). How was Cuomo able to address a $10 billion deficit so easily and quickly (on time) when past Governors have failed to submit their budgets on time while addressing much smaller issues?

2). How come the math does not add up? How does a 2.7% cut ($3.5 billion) erase a $10 billion deficit?

3). What is the impact of delaying addressing a majority of the out of control spending that would have resulted in the $10 billion deficit this year? What impact does that delay have on the next budget cycle?

4). Once the above answers are received,the next question, resulting from those answers, would be why has New York State been designated to receive a $12 billion bailout by an inappropriate use  and abuse of the 2009 Obama stimulus funds?

Review of the facts found the following. Cuomo accepted a $6.4 billion bailout for this budget year from the inappropriate application of US Taxpayer 2009 Stimulus funds towards closing the $10 billion deficit. In fact a total of $12 billion in bailout money has been designated for NY State from the stimulus fund just for temporary one off budget deficit payments. To put this in perspective if all 50 states received the same payment from the 2009 Stimulus package that would equate to use of $600 billion dollars of the 2009 stimulus money for non-stimulative debt payment (that would be 70% of the total stimulus funds).

What is the impact of Cuomo’s failure to address most of the spending problems resulting in the $10 billion deficit in the current budget? The impact is deferment of cutting over $6.4 billion this year to 2012. If Cuomo had addressed the $10 billion deficit issues this year the 2012 deficit would be a still painful but much more manageable $8.5 billion.

Cuomo, instead, has left a devastating $15 billion deficit looming over NY State for 2012. Cuomo in fact actually failed to cut even his rather tepid projected $3.5 billion from this year’s budget. Less than $3 billion was actually cut in the 2011-12 budget. Cuomo’s inability to even deliver the relatively small $3.5 billion cut does not bode well for New York State in 2012.

The discovery of the above concerns leads to many more questions such as:

  • Why has the US Taxpayers paid for the bailout of Cuomo and NY State and why has this gone essentially unreported by the media?
  • Why would the Obama Adminstration choose to apply stimulus funds in such large amounts towards what is non-job creating and non-stimulative purposes?
  • Is use of US Taxpayers dollars designated for stimulus funding used in this manner legal?
  • Is there an underlying political reason for the Obama Administration’s abuse of these stimulus dollars in this manner (is Cuomo being considered for a position in the Obama Administration)?
  • Is Cuomo planning on fleeing New York prior to the next budget cycle?

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