Governor Andrew Cuomo is reportedly gathering key advisors for emergency budget meeting to prepare for the state to lose billions of dollars in revenue when Congress’ so-called “supercommittee” doesn’t meet its deadline. A supercommittee failure would have a huge impact on the federal aid that makes up almost a third of the state budget.
The bipartisan supercommittee was created in August and tasked with cutting $1.2 trillion from the federal budget. If the supercommittee is unable to agree on a plan by Wednesday, it will trigger a drastic series of automatic cuts. Though there are still a few days before the deadline, members of the committee were required to present a plan by today. They are expected to admit failure by this afternoon. New York currently gets $40 billion, approximately 30 percent of the total state budget, in federal aid, which will be slashed dramatically when the supercommittee gives up the ghost.
According to the Associated Press, Governor Cuomo is preparing to have a bite taken out of his budget by planning an emergency meeting with his top advisors and running ”a series of scenarios” with the Division of Budget. Governor Cuomo is also expecting Wall Street’s reaction to the supercommittee collapse will cost the city. New York gets about 20 percent of its budget in business, sales and income taxes collected from Wall Street workers and markets have already taken a dive in anticipation of the supercommittee’s blown deadline.