We're also going to do the state finance report this week, and what you're going to see is what we expected, roughly a $13.3 billion shortfall from our forecast. Total effect over the period of the financial plan is $61 billion. Now, what happened? New York State was not, quote-unquote, "in trouble" before this happened. New York State was very, very strong before this happened. Our economy was growing at a very high rate. Our government spending has been at record lows. Our taxes today are lower than the day I took office. "Oh, you're a Democrat. How can that be?" They're numbers. Tax rates on individuals, businesses, every tax rate, as incredible as that sounds, is lower today than the day I took office. So the state finances were very, very strong, and then this economic tsunami hits and you shut down all the businesses. Everybody stays home. They're not getting a paycheck. They feel that economic anxiety. The consequences to the state is the revenue projections are way down.
I said to our senators, Schumer and Gillibrand, "Don't pass this past bill that they just did unless you have state and local funding, because they're not going to do it." When you don't fund state and local, you know who you don't fund? Police, fire, school teachers, school officials. All they said was, "Don't worry, we’re going to do it in the next bill."
As soon as the Senate acts, McConnell turns around and says, "I'm not going to do it. The state should declare bankruptcy. Bailout to the blue states." Ihe most un-American, uncharitable, ugly statement of all time.
Bail out New York? You're not bailing out New York. Every year, New York has bailed you out. Mitch McConnell is a taker, not a giver. New York is the state of givers. We put more money into the federal pot every year. We’re the number one state in donating to the federal pot, number one. Kentucky is the number three state in taking from the federal pot. They take out more from the federal pot than they put in every year. But this is America, states, one federal pot. You put in what you can, and the states that need it take it. And now he wants to look at New York and say, "We're bailing you out." You're bailing us out? Just give me my money back, Senator.
Yes, New York had more coronavirus cases than Kentucky. Do you know why? The flights from Europe land in New York. The flights were not landing in Kentucky. That's why we have the coronavirus cases. That's what the researchers now found two months later, that the virus went from China to Europe, got on a plane, and came here. And by the way, the virus probably got on a plane in China and came here, but China maybe landed in California. The European flights landed here. That's why New York has the coronavirus cases.
I mean, it's just ridiculous. Forget the morality of it, and the ethics of it, and the absurdity of it, and the meanness of it. Few problems with that premise. Legally, a state can't declare bankruptcy. You would need a federal law allowing states to declare bankruptcy. It's your suggestion, Senator McConnell. Pass the law. I dare you. And then go to the President and say, "Sign this bill allowing states to declare bankruptcy."
You want to send a signal to the markets that this nation is in real trouble? You want to send a international message that the economy is in turmoil? Do that. Allow states to declare bankruptcy legally, because you passed the bill. It'll be the first time in our nation's history that that happened. I dare you to do that, and then we'll see how many states actually take you up on it. I know I wouldn't, but if you believe what you said and you have the courage of conviction because you're a man of your word, pass that bill, if you weren't just playing politics. We'll see how long it takes him to do it. Pass a bill allowing states to be bankrupt and then let's watch how the stock market takes off at that great news about our economic resilience.
Back to COVID-19: NYC Resources
This page © 2020 Barry Drogin