By Steve Levy
Hold the presses! The so-called $268 billion New York State budget — presented with great fanfare in press releases by state leaders late this spring — was a fraud.
Now we’re finding out that, despite what the press releases said, the actual spending level is an astounding $277 billion. This equates to a phenomenal growth of almost 10% in the state budget — not the much lower figure Hochul touted. Over the past decade, the state budget has grown $40 billion over the rate of inflation.
This budgetary sleight of hand is one of the most egregious financial maneuvers in modern New York State history. And the saddest thing is that so few people in New York even know about it.
Where is the outrage? Where are the front-page headlines blaring out that Governor Hochul and state legislative leaders misled the people of New York, claiming that this budget is $9 billion less than it actually is?
Legislative leaders are claiming that all this money is extra funding flowing in from the federal government to help with healthcare costs. But they knew this money was slated for the state in March, long before they issued their press release on the final budget in late May.
Even though it’s federal money, it is important to keep it in the final budget numbers because that becomes the baseline for next year’s spending level. Every dollar received from the federal government frees up other dollars to be used by Albany for their own purposes. Because of this budget hocus pocus, the base level for next year‘s budget will start off $9 billion higher than the figures Hochul and her colleagues announced to the public.
This maneuver helped Hochul give the false appearance that the recently passed budget was half the percentage increase it actually was. It will also allow state leaders to make it appear next year’s percentage increase is lower than it would have been had the $268 billion baseline remained a reality. Talk about having it both ways.
In this way, Hochul and her minions can increase spending even further and claim it was just a small increase, not explaining that the increase is coming off the higher base, rather than the base she announced
What a deal for these politicians! Claim that your spending plan is $9 billion less than it actually is and get kudos for your fiscal restraint. Then, after the budget is passed, acknowledge that the budget is $9 million higher and claim that next year’s budget is barely going up — even though it will be a double-digit increase over the original numbers that the governor announced.
The only thing worse than our state leaders pulling these types of shenanigans is for them to pull it off without the public knowing.