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Coronavirus Updates: New York State Faces $13.3 Billion Shortfall Due To Coronavirus
By
Elizabeth Kim
Published Apr 24, 2020
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Governor Andrew Cuomo / Flickr
By
Elizabeth Kim
Published Apr 24, 2020
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This is our daily update of breaking COVID-19 news for Friday, April 24th, 2020. Previous daily updates can be found here, and up-to-date statistics are here.
Read our guide to understanding New York on PAUSE, NY's stay-at-home order; a look at preparing for the spread of coronavirus is here, and if you have lingering questions about the virus, here is our regularly updated coronavirus FAQ. Here are some local and state hotlines for more information: NYC: 311; NY State Hotline: 888-364-3065; NJ State Hotline: 800-222-1222.
12:45 p.m. New York state is facing a $13.3 billion budget shortfall, a 14 percent drop in its revenue forecast, as a consequence of the coronavirus crisis, Governor Andrew Cuomo said on Friday.
Spread over the fiscal years 2021 to 2024, the projected revenue losses add up $61 billion.
"The state finances were very, very strong, and then this economic tsunami hits," Cuomo said during his daily press briefing.
In fact, prior to the pandemic, the state was looking at a $6 billion deficit, mostly due to rising Medicaid costs.
Cuomo has urged the federal government to provide more budget funding for states, which in the absence of federal assistance would have to consider austerity measures that could impact police, firefighters, schools, transit and other municipal services. The latest $484 billion relief package signed by President Donald Trump on Friday contained no money for states.
On Wednesday, Senator Mitch McConnell, the Republican majority leader who represents Kentucky, described funding for states hard hit by coronavirus as a "blue state bailout." He said he would instead be in favor of states declaring bankruptcy. Both statements have infuriated Cuomo, who addressed them once again on Friday.
He pointed out that states cannot legally declare bankruptcy. Congress would have to propose and pass legislation to allow for it.
"Pass a law allowing states to declare bankruptcy," he said. "I dare you."
He added: "Pass that bill if you weren’t just playing politics. We’ll see how long it takes him to do it."
The spread of coronavirus has continued to decline, according to the state's statistics. On Thursday, the state added 422 fatalities, the smallest single-day death toll since April 1st.
The net change in the total number of hospitalizations across the state fell by 763, the biggest decrease the crisis began.
But in a sign that the state is not ready to lift social distancing measures anytime soon, Cuomo also announced that he would sign an executive order to ensure that all New Yorkers receive a postage-paid application to receive a ballot to vote in the June 23 primaries. Earlier this month, he signed an order allowing New Yorkers to perform absentee voting.
De Blasio Urges Rent Freeze, Calls For State To Allow Tenants To Apply Security Deposits Toward Rent
11:15 a.m. Mayor Bill de Blasio on Friday reiterated his call for a rent freeze for New York City's nearly one million rent stabilized apartments in the face of the coronavirus pandemic.
"To me, it’s abundantly clear. We need a rent freeze," he said during his morning press briefing.
His comments came in response to Thursday's Rent Guideline Board's report that recommended rent increases of between 2.5 percent and 3.5 percent for one-year leases and 3.3 percent to 6.75 percent for two-year leases.
The analysis is one of several that the board takes into consideration as it weighs what to do with rents under unprecedented circumstances. The authors of the report accounted for increased operating costs for landlords but not the coronavirus crisis.
The board, whose nine members are appointed by de Blasio, is expected to vote in June following a series of hearings and meetings. Members conducted their first meeting online on Thursday over the strenuous objection of tenant advocates who argued that renters could not fairly represent themselves under the circumstances.
Still, even a rent freeze would not help tenants who cannot pay rent because they have lost income as a result of coronavirus. According to the National Multifamily Housing Council, 69 percent of Americans paid their rent by April 5, down from 81 percent last month and 82 percent in April 2019.
The Rent Guidelines Board also does not impact non-rent-stabilized units, which make up the majority of the city's rental housing market.
On March 20th, Governor Andrew Cuomo announced a 90-day moratorium on evictions for both residential and commercial tenants.
But many have said the measure does not go far enough. Tenant groups, led by the New York tenant coalition Housing Justice for All, have called for a rent strike in May in hopes of pressuring Cuomo to cancel rent and mortgage payments altogether.
De Blasio, meanwhile, has asked the state to allow tenants to apply their security deposits toward rent, a policy which Connecticut adopted earlier this month.
On Friday, the mayor also announced that the city would strengthen its outreach to vulnerable communities that have been hardest hit by the virus. Last week, the city released data showing that blacks have had the highest infection and death rates, followed by Latinos. The city is in the midst of expanding testing in low-income neighborhoods, including at public housing complexes.
As part of its $10 million public awareness campaign, the city will send mailers to 3.4 million homes in English, Spanish and Chinese and make robocalls to 1.1 million residences in targeted zip codes. The city will also partner with faith leaders and small community health practices to deliver more information about the disease and perform health check-ins.
Contrary to the initial assessments, coronavirus is not an "equalizer," de Blasio said.
"This virus in fact discriminates," he added.
Lysol Warns Public Not To Ingest Product After Trump Peddles False Coronavirus Cures
The company that makes Lysol and other cleaning products issued an unusual warning on Friday morning, telling people not to improperly ingest or inject their product into their bodies after President Donald Trump dangerously suggested that doing so might kill the coronavirus.
"As a global leader in health and hygiene products, we must be clear that under no circumstance should our disinfectant products be administered into the human body (through injection, ingestion or any other route)," the company wrote in a press release, highlighting portions of the statement in bold.
During his daily press briefing on Thursday, Trump falsely theorized about disinfectants as well as ultraviolet light as possible cures for the disease after a scientist at the Department of Homeland Security spoke about how the government had tested whether sunlight and disinfectant could kill the virus on surfaces and in the air.
“And then I see the disinfectant where it knocks it out in a minute, one minute, and is there a way we can do something like that by injection inside, or almost a cleaning?” Trump mused. “Because you see it gets in the lungs and it does a tremendous number on the lungs, so it would be interesting to check that.”
Prior to that remark, he proposed experimenting with sunlight or UV rays.
“And then I said, supposing you brought the light inside the body, either through the skin or some other way," he said.
Medical and science experts were promptly appalled at the president's remarks. Long-term exposure to UV light carries the risk of premature skin aging and cancer. Ingesting a disinfectant like bleach or Lysol can result in death.
At one point, Trump asked Dr. Deborah Birx, the White House coronavirus response coordinator, if she had ever heard of sunlight as a possible remedy.
“Not as a treatment,” Birx replied meekly. “I mean, certainly fever...is a good thing. When you have a fever, it helps your body respond. But not as...I have not seen heat or ….”
Following the White House press conference, the Washington State emergency management division put out a warning on Twitter. "Please don't eat tide pods or inject yourself with any kind of disinfectant," the agency wrote. Other states, including New York, also released statements.
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covid-19 updates
coronavirus
Elizabeth Kim
Elizabeth Kim is a reporter on the People and Power desk who covers mayoral power. She previously covered the pandemic, housing, redevelopment and public spaces. A native of Queens, she speaks fluent Mandarin. Got a tip? Email [email protected]
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