Governor Uses Medicaid Money To Eliminate Proposed Taxes

Federal stimulus money to be used to stave off tax increases

Assemblyman Dave McDonough (R, C, I – Merrick) today released the following statement regarding Governor Paterson’s announcement that he would be using federal stimulus money designated for Medicaid to replace the 137 taxes and fee increases proposed in his executive budget released late last year:

“Although I am pleased that the governor has finally realized that we cannot tax ourselves out of this budget deficit, his use of federal stimulus money meant for Medicaid, as a way to avoid making tough cuts to government, is wrong. Rather than show true leadership by taking a scalpel to the bloated budget and trimming unnecessary spending, the governor has chosen to use monies from the federal stimulus package instead of reforming state government and implementing a property tax cap.

“By taking money away from Medicaid to eliminate his ill-conceived tax increases, the governor is passing costs on to counties who will be forced to raise property taxes on homeowners and businesses.

“I have said repeatedly that this state does not have a revenue problem; it has a spending problem. Today was a small victory for all those who have gym memberships, get their hair done or download music. However, with each dollar the governor spends from the federal stimulus package to bail out other programs, he is only delaying when he has to decide between making government work more efficiently and raising taxes. If his past record is any indication of his future decision-making actions, we can all expect to pay higher taxes sooner rather than later.”