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Moody's issues warning about NY budget deficit

Dec 05, 2019 12:00 pm
Michael Gormley is reporting for Newsday Moody's Investors Service December 4, issued a warning about New York's $6.1 billion budget deficit. The warning came one day after Assembly speaker Carl Heastie said he hopes to raise more in taxes to address the growing shortfall. The "credit negative" designation from the Wall Street credit rating agency is not a downgrade to the state's credit rating, but it “is indicative of the impact of a distinct event or development as one of many credit factors affecting the issuer,” according to a Moody's report. New York's credit rating remains a high “Aa1/stable outlook.” The Moody’s report is based on the Cuomo administration’s mid-year fiscal report released a week ago that projected a $6.1 billion deficit caused in part by a $4 billion increase in Medicaid spending. Medicaid provides health care for millions of low-income New Yorkers. Gov. Andrew M. Cuomo attributed the deficit to the Medicaid shortfall, "...caused by the reduction in payments from the federal government,” he said. The Times Union has reported state officials are considering an expansion of the state bottle-deposit law to cover liquor and wine bottles. Read the full story at Newsday [dot] com.