New York Daily News New York leaders grapple with economic impact of coronavirus by Denis Slattery, SHANT SHAHRIGIAN
With coronavirus wreaking havoc on the economy as the city and state are working on their budgets, leaders are starting to prepare for a major downturn.
Gov. Cuomo said Tuesday he’s asked the state comptroller to evaluate the outbreak’s impact on the state budget.
“You know what’s going on in the stock market. You also have what’s going on the economy overall, right? Conventions are being stopped, tourism is down, hotel bookings are down, restaurants are down,” Cuomo said in Albany. “So we just did the budget projection estimates. The world then changed since then, so I asked him for any advice that he might have."
Comptroller Tom DiNapoli’s spokesman acknowledged the request from Cuomo, saying, “the outlook has changed dramatically since the release of the consensus revenue forecast by the governor and the legislature.”
Earlier this year, Cuomo unveiled a proposed $178 billion budget. A projected deficit of $6 billion, blamed on runaway Medicaid spending, already posed a huge problem for lawmakers. But they had no way of predicting the coronavirus, too.
The deadly disease on Monday caused the Dow Jones Industrial Average to incur its worst drop since the financial crash of 2008, among other economic woes, raising fears of a recession.