A third round of delayed pay increases for roughly 80,000 government workers has raised questions about how the state will close its estimated $14 billion budget gap absent further federal relief and without raising taxes.
Pay raises scheduled for April, July, and September will be delayed another 90 days, after which the state will reassess whether they can be implemented, Freeman Klopott of the Division of the Budget told the Times Union in a statement.
COVID-19-related lockdowns have added to steep losses in tax collections and state revenues.
“The governor’s action is the bare minimum,” Ken Girardin, a fellow and director of strategic initiatives at the Empire Center, told The Center Square by email. “The unions have generally bet that the federal government will bail out New York with massive amounts of unrestricted cash.”
The state has not renewed service contracts and instituted a hiring freeze. But it has not