In response to a “troubling” trial balloon by a leading member of the Assembly Majority that more borrowing on the taxpayer credit card is on the horizon, Assemblyman Jim Tedisco (R,C,I-Schenectady-Saratoga), former Assembly Minority Leader and current Assistant Minority Whip, today called for a truth in borrowing law.
This week, a leading member of the Assembly Majority’s inner circle of leadership said that new borrowing is on the table to balance the state’s budget and curb the projected $10 billion deficit.
“When it comes to solving New York’s budget woes, more borrowing is not the answer. The state’s been there, done that and our economy and job climate is now a lot worse for wear,” said Tedisco. “Governor Cuomo had it right in his State of the State Address. New York can’t successfully emerge from this fiscal crisis by taxing, spending, or borrowing its way out.”
Tedisco’s Truth in Borrowing Act would reveal the true taxpayer expenses associated with state borrowing including the interest, payback period, and total cost. Sponsored by Senator Hugh Farley (R,C,I-Schenectady) in the Senate, the measure was passed in the Senate each year from 1993 to 2008.
New Yorkers are already on the hook for $56.6 billion in outstanding debt and are now paying more than $6.1 billion in debt service on this existing borrowing.
Tedisco noted that in 1990, the state sold Attica to a state authority and then leased it back in what was billed as $200 million in borrowing. As of 2010, the state has paid $344 million and still owes $222 million in principal and interest.
“It’s time to cut up the state’s credit card because taxpayers are all maxed out. The Governor’s message is clear: no more taxes and no more debt. We need to make New York open for business,” said Tedisco.