Cahill Reacts to Governor’s Executive Budget

January 22, 2008

Today, in the face of major economic uncertainty, Governor Spitzer unveiled a spending plan that closes a significant budget deficit while continuing to invest in our shared priorities, namely access to health care, property tax reduction, education and economic development. This is a sound proposal that avoids tax increases while providing a foundation for us to improve upon in the coming months.

The spending plan maintains our multi-year commitment to enhance education statewide by providing a record $21 billion in state aid. Even in the face of an enormous budget deficit, the Governor, by putting forth the largest education increase ever proposed in an Executive Budget, made clear that it is critical that we remain committed to increasing state aid and ensuring equity. The Governor has proposed some cuts in BOCES aid to area districts. I will work hard to restore these funds in the final budget.

Obviously, in light of the economic climate, the Governor had to make some tough choices. While the budget holds off on a planned expansion of the School Tax Relief (STAR) rebate program, Governor Spitzer continued rebates at current levels for everyone while providing extra funding for Seniors living on fixed incomes. In addition, the Governor has modified the education formula to direct more aid to high tax school districts, many of which are situated in the Hudson Valley.

The Governor’s budget continues to build upon measures enacted last year to reform our health care delivery system. The proposal lays out nearly $1 billion in potential savings by lowering drug costs, reigning in the profits of insurance providers and modernizing the Medicaid reimbursement formula to emphasize primary and preventative care while working to assure that the payment schedule reflects the actual costs of the care provided. This important Medicaid reform will provide the state with significant savings while vastly improving the quality of care. These potential savings will allow us to attract new physicians to the region, focus on chronic diseases and ensure that all children will have access to health insurance.

I have long believed that the key to reestablishing the vibrancy of New York’s economy can be found in the halls of our public institutions of higher education. Today, Governor Spitzer unveiled an economic development plan featuring a major investment in higher education as the centerpiece. It is important that our community colleges are not left behind that is why I plan to advocate for an additional $50 per capita for Ulster and Dutchess Community Colleges. The economic development budget also includes a number of initiatives aimed at improving the economy in the greater Hudson Valley and Catskill regions such as waterfront development, transportation infrastructure, an economic development revitalization fund and funding to attract businesses that align themselves with The Solar Energy Consortium.

The Governor’s proposal marks the beginning of what promises to be a challenging budget process. In the coming days and weeks I will be listening carefully to the needs and concerns of the communities throughout the 101st Assembly District to ensure that our priorities are fully represented in the final budget.

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