Mandates, Medicaid And MTA: The Budget Report Card

Legislative Column by Assemblyman David McDonough (R,C,I-Merrick)

Over the past week, I have begun an in-depth review of Governor Andrew Cuomo’s proposed 2011-2012 executive budget, a budget that offers some key reductions and other recommendations to cut a projected $10 billion deficit in its 1,000-plus pages. I also am carefully reviewing all proposals within the state budget that would have a direct impact on our district. There will be much more debate on the budget in the coming weeks, but I would like to highlight three areas of concern to Long Islanders.

The governor’s budget imposes discipline on state agencies through a 10 percent reduction in operating costs, a critical part of keeping spending in line with revenues and preventing future tax hikes. The Assembly Minority Conference shares Governor Cuomo’s vision of a leaner, more efficient state government through agency consolidation, and I am willing to work with him on any serious proposals to reduce the size of wasteful government.

Likewise, the governor’s Mandate Relief Redesign Team might prove a good start toward improved efficiency and potential savings. The team will explore ways to lift the burden of expensive state requirements on our local governments and schools. One of its first proposals, included in the budget, would encourage school districts to seek waivers from onerous mandates that no longer make sense – a potential first step to repeal irrelevant statewide requirements.

I want to make my position on state mandates very clear: we need to take the weight off the shoulders of local governments and schools and make Albany pay for the legislation it passes. I will work with colleagues on both sides of the aisle to help give more control to our local governments so they are not beholden to the whims of Albany.

I believe Governor Cuomo should have gone even further and made incentivizing recurring savings in local government a cornerstone of mandate relief. There have been local governments and schools in our state that for too long have become complacent with the lucrative inducements Albany has dangled in front of them. Let’s open up the system to reform and reward creativity instead of funding complacency.

The Medicaid system is one of, if not, the most outdated and abused program in New York. There have been some critical errors in its mismanagement over the last two decades leading to huge annual spending hikes that drive up our local property taxes. With the creation of the governor’s Medicaid Redesign Team, we can begin to find ways to reform this costly and ineffective program.

There is still one barrier to growth for our small businesses, though, which went unaddressed in the governor’s budget. I’m disappointed that Governor Cuomo did nothing to address the Metropolitan Transportation Authority’s (MTA) egregious payroll tax. The tax is driving away small businesses in our area and hurting the ability of local companies to compete with the rest of the state and region. I strongly urge Governor Cuomo to investigate the practices and policies of the MTA. If Governor Cuomo wants to cut spending and weed out corruption in our state, the MTA is the first place to start.

In the coming weeks, I will be working closely with my colleagues to focus on areas of concern such as mandates, Medicaid spending and the MTA payroll tax. It’s time for a state budget that works for Long Island.