When New York's new governor Andrew Cuomo gives his first state of the state address Wednesday, he's expected to provide more details about his plans for tackling New York's estimated $9 billion budget deficit. He might also give a clue as to how he intends to transform a state government he says is considered "a national punch line."
One trial balloon floated today in The Wall Street Journal is $2 billion in cuts to the state's Medicaid program.
In advance of his speech, the Financial 411 is talking to analysts on the left and the right about New York, the new governor and the budget. Monday, we heard from James Parrot of the Fiscal Policy Institute, a liberal think tank.
"It's not so much the high tax burden in New York State that's constraining our economy, it's the fact that we have a regressive tax burden and a lot of middle-income and lower-income people are paying a higher share of their income in state and local taxes than the people at the top," he said.
Today, we get a different view today from E.J, McMahon. He's a senior fellow with the Empire Center for New York State Policy, a project of the Manhattan Institute, a conservative think tank.
Traders lost some of their new year's swagger today, after minutes from a Federal Reserve meeting were released. The notes show central bank officials concerned that economic growth is not yet robust enough to curb the Fed's bond-buying program.
Stocks were mixed. The Dow added 20 points, to close at 11,691. The Nasdaq lost ten points, to close at 2,681, and the S&P 500 declined two points, ending the day at 1,270.