What will New York do when the stimulus money is gone?
Fighting 29th reproduces this graph from the Center on Budget and Policy Priorities, which shows the 31 percent of the state's budget for 2009 covered by federal stimulus funds.
New York predicted that without changes to its revenue structure or spending programs, available funds in fiscal year 2010 (the 12-month period beginning April 1, 2009) would fall about $17.9 billion or 26 percent short of what was needed to balance the budget. In addition, New York’s FY2009 budget was projected to be short $2.2 billion due to declining revenues and rising costs.
The federal recovery law is providing New York $6.2 billion in federal funding that it is using to help close its budget gap. This includes $5 billion in additional federal Medicaid funding, $876 million in education-related State Fiscal Stabilization Fund money, and $274 million from the “government services” component of the State Fiscal Stabilization Fund.