The next time you hear Gov. Cuomo whine about how federal tax reforms dealt New Yorkers a painful blow, tell him to look in the mirror.
Turns out his budget gooses state-funded spending by 4.1 percent. That’s more than twice inflation, and twice the 1.9 percent he claims it does. No wonder New York has the nation’s highest tax burden — and will be among the states hit hardest by the new cap on state- and local-tax (SALT) deductions.
As the Citizens Budget Commission notes, Cuomo’s plan “obscures the true rate of growth” through a number of budget tricks, e.g, by shifting expenses “off-budget” or to other budget years or by reclassifying it.
Revenue from the MTA’s “mobility tax,” for example, will go directly to the agency, instead of through Albany first. That saves Cuomo $1.5 billion in “spending” — but the money will be spent all the same.
Similarly, the gov hopes to make $340 million in debt repayments this year, even though they’re not due until next year. That may be a wise move, but it also makes spending growth look lower.
All told, Cuomo’s plan hides $2.3 billion in outlays. That’s on top of the $590 million hidden from this year’s budget.
Yes, as an aide noted, Cuomo has kept a lid on budget growth more than other governors. But let’s be honest: Total spending in New York has long been out of control; not even counting the hidden money, the new budget calls for a mind-blowing $168 billion in outlays — putting New York high on the list among the states for per-capita outlays.
Which is why the state- and local-tax burden here is so high. And why New Yorkers will feel more of a hit than other states from the SALT-writeoff cap.
Of course, Cuomo knows all this. Hey — why else would he try to make spending appear lower than it actually is?