Cuomo: Supercommittee stalemate means state could lose $5B

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Following a conference call today with a team of economic advisers, Gov. Andrew Cuomo called the ongoing stalemate in the federal “supercommittee” a “fundamental failure of government.”

In a statement, Cuomo blasted the supercommittee stalemate, saying it could cost the state $5 billion over a decade.

The six Democrats and six Republicans on the congressional supercommittee were tasked with coming up with $1.2 trillion in cuts over the next 10 years. Its deadline is Wednesday, but aides have conceded the committee likely won’t meet it.

Cuomo said he has directed his team of advisers — 19 people from the public and private sectors announced during his transition to governor — to come up with an “expedited job creation and fiscal stabilization plan.”

Here’s his statement:

“Today, I held a conference call with my Council of Economic and Fiscal Advisors to discuss the potential negative fiscal and economic impact of the actions, or inaction, of the Congressional Joint Select Committee on Deficit Reduction. Washington’s inability to get its fiscal house in order and work in a bipartisan fashion to create jobs represents a fundamental failure of government that has bred frustration and anger among the people and prolonged the worst economic conditions since the Great Depression.

While Washington has yet to make up its mind about what cuts it will make, this state government is analyzing potential impacts on the budget and the economy. If the committee fails to reach an agreement and Congress moves forward with its so-called ‘sequestered cuts,’ the Budget Division estimates that New York could lose approximately $5 billion in federal funding over 10 years beginning this coming fiscal year. This does not account for additional revenue losses from jobs losses and Wall Street declines. These events, combined with a stagnant national economy and the expanding fiscal crisis in Europe that has led to a sudden and severe decline in revenues for the state, have dramatically changed the fiscal course of the state.

I have asked my Council of Economic and Fiscal Advisors to work with senior members of my administration to draw up an expedited job creation and fiscal stabilization plan. This proposal would be based on the reality that the best way to generate revenue for the state and revitalize our economy is to create jobs.”

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  1. Well! … If, The Honoable Govornor of The State of NY thinks that the ‘stalemate of the Supercommittee” on the Hill is a “fundamental failure of Government”, I am wondering, if he may recall its his Party Government!… After all there seems to be more similarities than differences between DC and NY! ( Unless Mr.Coumo has switched Parties with Mr. Bloomburg!….. Having said that, I must mention that at least the US House of Representatives are engaged in their Constitutional Role and are atleast talking and thinking! – However, when Mr.Coumo’s Party was in MAJORITY due to The President’s emerging popularity; and later in Office, Why did the debt ceiling not enhanced?. Here, my additional point is on similar note that unlike The New York Govornor the Congress is not ‘imposing’ a “2%” dictatorial cap at will!

    THE Fundamentals of Economics do not need to be intervened by invading it by too much Greenspan type of invations and distorting it by manipulation in Macroeconomic and leaving the microeconomics of The Republic unattended! Keynes may had received a Noble Prize; so has Mr.Obama.

    Why do we care so much for saving the Banking Gaints? It’s easy to show off that there is a regulatory mechanism in place, but, if that very Regulatory Setting is founded on “standards of catering” the very Financial Institutioyns; then its purpose becomes worthless and dusts the Eyes of Rule of Law ,Check and Balances and everything deeper and deeper!

    Isn’t putting 2% Cap on Counties and Crying for 5Billion contridictory in The Governor’s opinion? Lord! help us, if this is what Mr.Coumo’s ‘ Teamed of Economic Adversers’ are telling him!

    HABIBHASAN-An American Storyteller