Despite one-party rule in Albany, Gov. Andrew Cuomo and state lawmakers failed to reach a consensus on a revenue forecast for the 2019-20 budget — an indication that negotiations for a new spending plan will be challenging over the next few weeks. 

The consensus economic and revenue forecast report is an important element of budget negotiations. It represents an agreement between the governor and state Legislature on the revenues available for the budget.

In February, Cuomo and state Comptroller Tom DiNapoli announced that the state was facing a larger budget gap than anticipated due to a $2.3 billion decline in income tax receipts. Cuomo blamed the drop on the 2017 federal tax law that capped state and local tax deductions at $10,000.

Other factors contributed to the decline in tax receipts, including the volatility of the financial markets. 

With less revenue for the budget, some funding priorities may need to be scrapped or reduced. In his executive budget proposal, Cuomo called for multi-billion dollar investments in education and health care. He also wants to continue some of his top initiatives, including $750 million for the regional economic development councils. 

The Assembly and Senate will release their one-house budget plans this month. 

“It is unfortunate that we could not come to an agreement on a revenue consensus with the governor,” Senate Majority Leader Andrea Stewart-Cousins said in a statement. “It remains the intention of both the Assembly and the Senate to reach a fiscally responsible, on-time budget that meets our priorities.”