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| Outbreak Ravages N.Y. Budget; Governor Calls Aid Deal ‘Terrible’ for State | Outbreak Ravages N.Y. Budget; Governor Calls Aid Deal ‘Terrible’ for State |
| (about 13 hours later) | |
| The coronavirus felled the fixtures of New York’s economic engine: Broadway is dark, Times Square is deserted and Wall Street is in tumult. | The coronavirus felled the fixtures of New York’s economic engine: Broadway is dark, Times Square is deserted and Wall Street is in tumult. |
| But as the pandemic forced restaurants, malls and hotels to close, and tens of thousands of workers to lose their paychecks, it also wreaked havoc on one inconspicuous victim: New York’s finances. | But as the pandemic forced restaurants, malls and hotels to close, and tens of thousands of workers to lose their paychecks, it also wreaked havoc on one inconspicuous victim: New York’s finances. |
| The economic slowdown, however long it may last, is projected to cost New York State between $9 billion to $15 billion in lost tax revenue, with the worst-case scenario putting the state in financial straits not seen since the Great Recession a decade ago. | The economic slowdown, however long it may last, is projected to cost New York State between $9 billion to $15 billion in lost tax revenue, with the worst-case scenario putting the state in financial straits not seen since the Great Recession a decade ago. |
| The outbreak is expected to slash revenue from personal income taxes, sales taxes and business taxes — all of which typically account for almost half of state revenues — and may impact essential services like education, health care and transportation, according to the governor’s budget office. | The outbreak is expected to slash revenue from personal income taxes, sales taxes and business taxes — all of which typically account for almost half of state revenues — and may impact essential services like education, health care and transportation, according to the governor’s budget office. |
| State and city officials had hoped that the federal government would soften the blow to people’s pockets and the government’s ledgers through a $2 trillion federal stimulus package that is expected to be enacted within days. | State and city officials had hoped that the federal government would soften the blow to people’s pockets and the government’s ledgers through a $2 trillion federal stimulus package that is expected to be enacted within days. |
| But Gov. Andrew M. Cuomo complained on Wednesday that the deal was “terrible” for New York because he said that only $3.1 billion was earmarked to help the state with its budget gap, an amount that his office said was disproportionately low compared to the funds allotted to states with fewer coronavirus cases and smaller budgets. | But Gov. Andrew M. Cuomo complained on Wednesday that the deal was “terrible” for New York because he said that only $3.1 billion was earmarked to help the state with its budget gap, an amount that his office said was disproportionately low compared to the funds allotted to states with fewer coronavirus cases and smaller budgets. |
| Hours later, Mayor Bill de Blasio characterized the bill as “immoral” because New York City would receive only $1 billion in direct aid despite having a third of the country’s virus cases. | Hours later, Mayor Bill de Blasio characterized the bill as “immoral” because New York City would receive only $1 billion in direct aid despite having a third of the country’s virus cases. |
| Still, Chuck Schumer, the Democratic Senate minority leader negotiating the final deal, noted New York would receive over $40 billion in unemployment insurance, grants for hospitals and much-needed funding for the Metropolitan Transportation Authority, whose ridership has plummeted. | Still, Chuck Schumer, the Democratic Senate minority leader negotiating the final deal, noted New York would receive over $40 billion in unemployment insurance, grants for hospitals and much-needed funding for the Metropolitan Transportation Authority, whose ridership has plummeted. |
| New York officials said the state is facing more than just a revenue problem. | New York officials said the state is facing more than just a revenue problem. |
| The state has plowed unanticipated amounts of money into fighting the outbreak: Just last week, New York spent or committed more than $600 million to buy medical supplies, including urgently needed masks, portable X-ray machines and ventilators, said Robert Mujica, the state budget director. | The state has plowed unanticipated amounts of money into fighting the outbreak: Just last week, New York spent or committed more than $600 million to buy medical supplies, including urgently needed masks, portable X-ray machines and ventilators, said Robert Mujica, the state budget director. |
| “Prior to this, our budgets were very stable, our financial condition healthy,” Mr. Mujica said in an interview this week. “This seriously destabilizes our overall picture and, at this point, it’s too early to tell what the total fallout is and what the next steps are.” | “Prior to this, our budgets were very stable, our financial condition healthy,” Mr. Mujica said in an interview this week. “This seriously destabilizes our overall picture and, at this point, it’s too early to tell what the total fallout is and what the next steps are.” |
| In New York City, officials are similarly bracing for dire consequences, as the tourism and hospitality industry effectively shuts down. | In New York City, officials are similarly bracing for dire consequences, as the tourism and hospitality industry effectively shuts down. |
| The city could face revenue shortfalls of between $4.8 billion and $6 billion over the next 15 months, according to the city comptroller, an estimate predicated on the theory that recovery efforts will begin to take hold between late May or end of June. | The city could face revenue shortfalls of between $4.8 billion and $6 billion over the next 15 months, according to the city comptroller, an estimate predicated on the theory that recovery efforts will begin to take hold between late May or end of June. |
| The Citizens Budget Commission, a nonprofit group, was less optimistic; Maria Doulis, vice president of the group, said the city could lose $20 billion in revenues over the next three fiscal years. | The Citizens Budget Commission, a nonprofit group, was less optimistic; Maria Doulis, vice president of the group, said the city could lose $20 billion in revenues over the next three fiscal years. |
| The city could bleed 750,000 jobs in the cultural, restaurant, retail, airline and other sectors, eliminating between $1.5 billion to $2 billion in wages per month, according to James Parrott, director of economic and fiscal policies at the Center for New York City Affairs at the New School. | The city could bleed 750,000 jobs in the cultural, restaurant, retail, airline and other sectors, eliminating between $1.5 billion to $2 billion in wages per month, according to James Parrott, director of economic and fiscal policies at the Center for New York City Affairs at the New School. |
| Mr. de Blasio has ordered city agencies to identify $1.3 billion in budget cuts, but warned that he may ask for more as the city continues to “lose revenue and see massive new expenses because of this crisis.” | Mr. de Blasio has ordered city agencies to identify $1.3 billion in budget cuts, but warned that he may ask for more as the city continues to “lose revenue and see massive new expenses because of this crisis.” |
| With economists agreeing that the country is likely headed into a recession, the state’s estimates are based on two potential scenarios, one more devastating than the other. | With economists agreeing that the country is likely headed into a recession, the state’s estimates are based on two potential scenarios, one more devastating than the other. |
| The first forecasts a short downturn with a recovery that begins in the summer months, leading to a $9 billion shortfall. The other foresees a longer recovery — “In line with the Great Recession,” Mr. Mujica said — that could cost the state up to $15 billion in lost revenue. | The first forecasts a short downturn with a recovery that begins in the summer months, leading to a $9 billion shortfall. The other foresees a longer recovery — “In line with the Great Recession,” Mr. Mujica said — that could cost the state up to $15 billion in lost revenue. |
| “Everyone is projecting there will be a recovery, it’s just a matter of when it starts and how fast,” Mr. Mujica said. “Unlike other disasters or emergencies, where you kind of get a sense of where things are going, this is a little more uncertain still.” | “Everyone is projecting there will be a recovery, it’s just a matter of when it starts and how fast,” Mr. Mujica said. “Unlike other disasters or emergencies, where you kind of get a sense of where things are going, this is a little more uncertain still.” |
| New York is incredibly reliant on the financial industry and taxes from high-income earners, which became a glaring vulnerability during the recession in 2009 when capital gains plummeted and the state lost billions of dollars in collections from personal income tax. | New York is incredibly reliant on the financial industry and taxes from high-income earners, which became a glaring vulnerability during the recession in 2009 when capital gains plummeted and the state lost billions of dollars in collections from personal income tax. |
| That contributed to a $16 billion budget gap for the 2010 fiscal year, which was balanced primarily through tax increases and a federal stimulus bill, but still left a $7.4 billion gap for the following year. | That contributed to a $16 billion budget gap for the 2010 fiscal year, which was balanced primarily through tax increases and a federal stimulus bill, but still left a $7.4 billion gap for the following year. |
| Turmoil over New York’s budget, one of the largest in the nation, has upended the political norms of budget negotiations in Albany, where Democrats control the Legislature. | Turmoil over New York’s budget, one of the largest in the nation, has upended the political norms of budget negotiations in Albany, where Democrats control the Legislature. |
| Mr. Cuomo’s proposal for a $178.6 billion budget is in flux because of the lower tax collection estimates. The intense focus on the outbreak has also threatened to leave some progressive priorities, like marijuana legalization, out of the final budget. | Mr. Cuomo’s proposal for a $178.6 billion budget is in flux because of the lower tax collection estimates. The intense focus on the outbreak has also threatened to leave some progressive priorities, like marijuana legalization, out of the final budget. |
| Faced with a looming deadline to pass a balanced budget by April 1, state lawmakers haven’t convened in the capital in almost a week after three of their colleagues tested positive for the virus, even though negotiations with the governor have continued among staffers. | Faced with a looming deadline to pass a balanced budget by April 1, state lawmakers haven’t convened in the capital in almost a week after three of their colleagues tested positive for the virus, even though negotiations with the governor have continued among staffers. |
| It is unclear if legislators will convene this week; Mike Murphy, a spokesman for the State Senate Democratic majority, said that lawmakers are looking at the possibility of voting remotely. | It is unclear if legislators will convene this week; Mike Murphy, a spokesman for the State Senate Democratic majority, said that lawmakers are looking at the possibility of voting remotely. |
| Updated June 16, 2020 | |
| The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. | Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. |
| The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| “The crisis is hitting with no end in sight and you’ve got to get a budget done within the next week,” said Thomas DiNapoli, the state comptroller and a former assemblyman. “That’s a very monumental challenge.” | “The crisis is hitting with no end in sight and you’ve got to get a budget done within the next week,” said Thomas DiNapoli, the state comptroller and a former assemblyman. “That’s a very monumental challenge.” |
| A hodgepodge of hurdles is having an outsized effect on the state’s finances, including a possible cash flow crunch within a few months. | A hodgepodge of hurdles is having an outsized effect on the state’s finances, including a possible cash flow crunch within a few months. |
| The federal government’s decision to allow taxpayers to delay filing their returns by up to 90 days means the state’s coffers will also see a delay in billions of dollars in tax payments. That reduced cash-on-hand will come at a time when the state is meant to dole out hefty payments in aid to school districts and reimbursements to taxpayers. | The federal government’s decision to allow taxpayers to delay filing their returns by up to 90 days means the state’s coffers will also see a delay in billions of dollars in tax payments. That reduced cash-on-hand will come at a time when the state is meant to dole out hefty payments in aid to school districts and reimbursements to taxpayers. |
| With casinos closed, the state can no longer confidently rely on the $1.1 billion it expected to receive from the gaming industry next fiscal year. And with the markets in a spiral, the tax revenue from the securities industry in Wall Street — which accounts for 17 percent of all state tax collections — also looks bleak. | With casinos closed, the state can no longer confidently rely on the $1.1 billion it expected to receive from the gaming industry next fiscal year. And with the markets in a spiral, the tax revenue from the securities industry in Wall Street — which accounts for 17 percent of all state tax collections — also looks bleak. |
| Mr. Cuomo has said he does not regret taking actions during the coronavirus epidemic that have left tens of thousands without work. The state’s priorities, Mr. Cuomo said, are unequivocal: Saving lives should outweigh any economic repercussions. | Mr. Cuomo has said he does not regret taking actions during the coronavirus epidemic that have left tens of thousands without work. The state’s priorities, Mr. Cuomo said, are unequivocal: Saving lives should outweigh any economic repercussions. |
| On Monday, however, the governor said he was devising a strategy to gradually jump-start parts of the economy while balancing public health priorities. He is exploring scenarios in which young people and those who contracted the virus, but were now healthy, could safely return to work. | On Monday, however, the governor said he was devising a strategy to gradually jump-start parts of the economy while balancing public health priorities. He is exploring scenarios in which young people and those who contracted the virus, but were now healthy, could safely return to work. |
| “You can’t stop the economy forever,” Mr. Cuomo said during a news conference. “Can you get to a point where the healthy, the people who are most likely not going to be affected, can go to work?” | “You can’t stop the economy forever,” Mr. Cuomo said during a news conference. “Can you get to a point where the healthy, the people who are most likely not going to be affected, can go to work?” |
| Some relief is already on the way: Congress recently passed an emergency package that provides many workers with some paid leave if they need to take time off because of the virus. | Some relief is already on the way: Congress recently passed an emergency package that provides many workers with some paid leave if they need to take time off because of the virus. |
| That relief package also gave New York access to billions of dollars in additional Medicaid funds that could help plug the state’s existing $6.1 billion budget gap, mostly a result of growing Medicaid costs. | That relief package also gave New York access to billions of dollars in additional Medicaid funds that could help plug the state’s existing $6.1 billion budget gap, mostly a result of growing Medicaid costs. |
| Under a provision in the package, however, the state is eligible for the money only if it doesn’t make structural changes to its Medicaid program — something Mr. Cuomo is seeking to do through a recently convened Medical Redesign Team and by altering how much localities should contribute toward Medicaid costs. | Under a provision in the package, however, the state is eligible for the money only if it doesn’t make structural changes to its Medicaid program — something Mr. Cuomo is seeking to do through a recently convened Medical Redesign Team and by altering how much localities should contribute toward Medicaid costs. |
| The governor is lobbying Congress to strike that provision, contending that the state needs to access the federal funds as it simultaneously changes the state’s growing Medicaid program. | The governor is lobbying Congress to strike that provision, contending that the state needs to access the federal funds as it simultaneously changes the state’s growing Medicaid program. |