Gov. Kathy Hochul and state lawmakers are about to ram through one of the most reckless spending plans in New York history — socking taxpayers with a jaw-dropping quarter-trillion dollars in new bills for the coming fiscal year.
Even as they just ignore the fact that President Donald Trump and Republicans in Washington are set on slashing federal aid.
Albany’s spending plan contains absolutely no contingency for such cuts, all but guaranteeing that the state will suddenly face a multibillion-dollar budget hole later this year that would force tax hikes, cuts in services or both.
Even before any rollback on DC funds, Albany’s plan contains billions in red ink for three straight years after fiscal year 2026; by 2029, warns a Citizens Budget Commission report out Tuesday, the “structural gap” (after adjustments) comes to a whopping $18.2 billion.
That alone is unsustainable. And if (when) Washington cuts aid, that nut will grow bigger still.
Congress already plans to shave $880 billion in spending over the next decade — including for Medicaid payouts, which disproportionately go to New York.
Seemingly certain to fail is the budget assumption that an utter scam can milk $3.7 billion more in federal Medicaid bucks: This shady scheme centers on taxing managed-care plans to inflate the bill reported for federal matching funds — then sending the plans the cash to cover the “tax.”
“If we had to build a budget that is going to anticipate the Republicans,” puffs Assembly Speaker Carl Heastie, “we would never get a budget.”
Translation: We don’t want to even think about spending restraint.
It’s nuts: Hochul wants to boost Medicaid spending 17%, while the CBC flags a spike of 11% in overall state operating funds in her budget and 14% in the Legislature’s plan.
Honest, sane planning can avoid the looming nightmare.
The CBC recommends restraining spending growth “ideally to 2.7% a year,” saving at least $2 billion of this year’s $3.5 billion surplus, targeting Medicaid’s “high and growing” costs and nixing any new taxes, among other ideas.
Instead, Hochul & Co. look to be steering straight for the train wreck.
This isn’t budgeting so much as brigandry.
This story originally appeared on NYPost
