Gov. Cuomo considering how to spend $4 billion from national settlement

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August 6, 2014

For the first time in several years, New York has a surplus of $3 billion to $4 billion. Governor Cuomo says he’s still looking at options on how best to use it.

The state has recently been the beneficiary of a windfall from major lawsuit settlements with several banks and insurance companies. After years of running a debt or breaking even, New York now has an additional $4 billion, say Governor Cuomo. Cuomo says he’s still thinking about the best use for the money.

“We have some building to do,” Cuomo said. “We could do more for infrastructure, we could do more to invest in education, and we could do more to cut taxes.”

Cuomo would not say whether some of the money might go towards the rebuilding of the Tappan Zee Bridge. His administration has not yet revealed a full financial plan for the multibillion dollar project.

New York may lose some of the surplus, though. The federal government is demanding that the state return $1.3 billion in Medicaid funds that it says was overspent. The governor’s budget office is appealing the decision, but says in its quarterly financial plan that there “can be no assurance that the State will be successful.”