Thursday, November 18, 2010

We're in for a big shock soon

From the Times Union:

For the past two years, finance experts as well as some politicians have warned that once the generosity of the 2009 American Recovery and Reinvestment Act winds down, New York would face even worse budget problems.

That's because the stimulus money acted as a crutch that allowed the state's two major expenses, education and Medicaid, to grow despite the recession.

With the stimulus ending next summer, those rising costs will have to come from state taxpayers -- unless cuts are made.

The deficit for the current fiscal year could run from $315 million to $1 billion, depending on which branch of state government is doing the analysis. And the 2011-2012 fiscal year, which starts April 1, could begin with a $10 billion deficit -- $1 billion more than previously predicted.

The stimulus program, launched by the Obama administration after the 2008 financial meltdown, included public works money and support for state government functions such as Medicaid and education.

Megna noted that when it ends, New York will be on track to spend an additional $4 billion in Medicaid and $1 billion in education expenses.

Medicaid may be the hardest area in which to control spending because it's so closely tied to the ongoing economic slump. As more New Yorkers lost their jobs or became impoverished during the recession, the Medicaid rolls mushroomed: By the end of the year, analysts expect almost 5 million New Yorkers -- nearly a quarter of the state's population -- will be on Medicaid.

The program was growing before the recession, as former Gov. Eliot Spitzer had initiated a program to get more people who were eligible for Medicaid to use it. All told, the Medicaid rolls have grown by 700,000 during the past three years.

In addition to a growing Medicaid program and the loss of federal money, New York's finances are still groaning under a record 7.2 percent drop in income among state residents last year, and the consequent dip in state tax receipts.


Anonymous said...

Albany has taken a sort of "We suck, but at least we're not California" attitude for the past few years. Soon we'll be in just as crappy shape.

Anonymous said...

do not worry the progressive,liberal ,democrats will be voted in again by the ignorant scmucks in this state.

escape while you can.....

Anonymous said...

You first.

Anonymous said...

The stimulus - your money - went down a dark hole never, ever to be seen again, stolen.

Next year, the recovery will limp along battered and everything around us will begin a long slow, (sorry) deterioration of life, across the board.

Anonymous said...

I think they should charge for medicaid. It should be based on a sliding scale this way money is being put back into the system. And maybe if NY hired people who ACTUALLY WORKED money could be saved in time and productivity. Anytime you have to deal with any city agency it takes min of 1 month. A friend of mine needed food stamps (yes she works) and actually lost money from her job running back and forth to the food stamp office because she was told she couldn't fax anything because they throw out ALL THE FAXES.

Anonymous said...

Hire a forensic accountant to find all the waste in our government. There is plenty. Cut off services to illegals. They have no right to taxpayer funded services. Cut political staffs ten percent and give incentives to agencies that actually save the city money. There is so much fraud in NYC. So many ways to save money. If the average joe can do it, the city government can do it. Disband the city council and get rid of the public advocate. Just cutting them alone and their staffs will save millions.

Sarah said...

When Albany talks about spending cuts they really mean cuts in spending increases. If you pick up the Middle Village Senior Center newsletter for this month you will see State Senator Adabbo has allocated hundreds and hundreds of thousands of dollars for renovating the kitchen and dining hall. Billions of dollars are spent all over the state on tweeting projects just like this. These politicians are spending us into bankruptcy. Not only don’t they care but also they have 55% of the voters agreeing with them. As long as the process of buying off voters on any level, voters who have no skin in the game, continues then we will decline.

Anonymous said...

I love Sarah!