Background
Due to the coronavirus, non-essential businesses in New York are effectively closed. This has resulted in many employees being laid off or furloughed. Because of this, the state tax revenues since the start of the state mandated PAUSE have significantly dropped.
The recent federal stimulus package allocated $2 trillion to support corporations and individuals affected by the economic slowdown caused by the coronavirus. However, while there was money allocated to states and cities to help cover the direct cost of the coronavirus, there was no money allocated to help the states cover the loss of tax revenue. According to Governor Cuomo, this loss in tax revenue is likely to cause a 15 to 17 billion budget deficit.
The state can not operate in a budget deficit, so if this deficit is not addressed, the state will have between 15 and 17 billion dollars to spend. One of the largest portions of the budget is education support. Support for our local schools, state colleges, and state universities. If the aid to education has to be drastically reduced, many local school districts will have no choice but to increase the tax rate to make up the difference.
This call to action is to ask our Senators and our Congress Members to support a new stimulus package that will help states address their tax shortfall due to the coronavirus.
Call To Action Script
The recent coronavirus stimulus package did not provide any substantial funding to the states and local governments to cover their budget shortfalls caused by the economic slowdown we are experiencing due to the coronavirus. The budget shortfall in NY is expected to be between 15 to 17 billion dollars. A budget shortfall of this size will have a significant effect on critical services, including education. Does [Senator Schumer/Senator Gillibrand/Congressman Delgado] have a plan to address the financial needs of states and localities? If so, can you let me know what those plans are?
Thanks to Jeff Collins for this post.
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