From the Morning Memo:

Gov. Andrew Cuomo this week raised the specter of a special session before the year ends to address the deficit caused by federal health care cuts – both already realized and potentially pending.

But state Comptroller Tom DiNapoli, New York’s chief bean counter, said during a CapTon interview last night that he doesn’t believe state lawmakers will be forced to return to the Capitol prior to the January start of the 2018 session if Congress reaches a deal in the coming weeks on averting reductions to the Disproportionate Share Hospital payments and Children’s Health Insurance Plan.

“The DSH cuts have been on the table for a long period of time, they keep getting pushed off though,” DiNapoli said. “We’ve heard from some of our Senate leaders, and (Senate Minority Leader Chuck Schumer) is cautiously optimistic, that Washington they will in fact come to some agreement, if not all, to put off some of these cuts again. So, I think part of what we need to do is to wait and see what gets sorted out in Washington.”

Cuomo has been sounding the alarm about the damage that will be done to New York’s bottom line – a loss of several billion dollars over the next several years alone – if Congress does not reverse funding cuts to safety net hospitals, which took effect Oct. 1. The SHP cuts have been scheduled for some time as part of the Affordable Care Act, but Congress has repeatedly pushed them back.

Congress also failed to reauthorize the program that provides coverage for some 330,000 low-income kids across the state who aren’t eligible for Medicaid. That program, known as CHIP, technically ran its course at the end of September as a result of federal inaction, and New York stands to lose $1.1 billion if it is not reauthorized, the governor said.

And the situation will be even worse, the governor has warned, if the tax reform plan currently under negotiation on Capitol Hill eradicates New Yorkers’ long-standing ability to deduct their state and local taxes, helping to take the sting out of the fact that they live in the state with the nation’s highest property tax burden. (Thanks to pushback on both sides of the aisle, it now appears Republicans are backing down from an outright repeal, though some changes are still under consideration).

What’s more, New York also stands to lose a big chunk of its federal Medicaid funding if Congress ever manages to get a deal on repeal and replacement of Obamacare, with the most recent proposal – Cassidy-Graham – calling for block granting those funds, in a move that would hurt New York more than any other state, Cuomo said.

DiNapoli declined to pick sides in the latest fight between Cuomo and NYC Mayor Bill de Blasio over funding for NYC Health + Hospitals, the nation’s largest municipal public hospital system and New York’s largest provider of safety-net care.

“No one has a crystal ball, but I think we’ll see some, my hope is, we’ll see some federal action on this sooner or later, so some of what’s being discussed is a dire consequence, having a special session, some of the things we’re talking about, probably, hopefully will not come to pass,” DiNapoli said when asked if the mayor should, as the governor maintains, pick up the tab for H+H funding, or, as the mayor insists, the state should pony up the $380 million it is currently withholding from the system.

The comptroller did say that he believes the Republican members of New York’s congressional delegation need to “step up to the plate and say to their leadership: this is really going to hurt us.”

“We already know there’s going to be many competitive House races in the state,” DiNapoli said. If anything like what’s being proposed goes through, I think people are going to be outraged – as well they should be.”

“…It’s very important that New York push back. What the governor is saying, what the mayor is saying, all of that is accurate, because if we don’t win some of these battles in Washington, then we’re going to be back home fighting each other over a diminished pot.”

“That’s going to be very hard for the Legislature at the state level to then have to figure out how we’re going to keep all these local governments from going over the edge in terms of providing services versus raising taxes to keep providing the services that New Yorkers expect.”