Cahill Reacts to Governor’s Executive Budget

December 16, 2008

Today, in the face of economic challenges not seen since the Great Depression, Governor Paterson presented an Executive Budget that would close an unprecedented $15.4 billion deficit. The proposal reflects the harsh realities brought on by the global recession, the collapse of the financial sector on Wall Street the still contracting real estate market.

Governor Paterson put forth a plan equal to the magnitude of this crisis. Now is the time for every member of the Legislature to set aside political differences with the Executive to work with and improve upon the blueprint presented here today. While addressing this dire situation, we should strive to use it as an opportunity to completely reassess the way every level of government functions in New York State.

As we move forward, there will have to be agreement upon difficult but necessary spending cuts and revenue enhancements – that is new taxes and fees – that will impact all areas of the state. As this plan develops it is critical that no single part of our society to bear an unfair portion of the burden. In particular, we must guard against provisions would shift expenses onto property taxpayers, cripple essential services or threaten the quality of our health care or education systems.

The Governor has decided to advance approximately $3.1 billion in new taxes and fees. If we are going to go forward with revenue enhancements to close this extraordinary budget gap they must be balanced. Increases in SUNY tuition, sales taxes on goods, services, entertainment and the increased assessments on utilities and health care disproportionately target an already struggling middle class. Every effort should be made to mitigate these charges by identifying entities that that have not traditionally paid their fair share such as the big oil companies or the wealthiest New York earners, almost half of whom live out of state, proposals already advanced by the Assembly this year.

Education aid and health care funding represent over fifty percent of the total state budget. Spending reductions in these areas will be unavoidable. When it comes to our schools, we cannot abandon our commitment to restoring equity to our education system while relieving the immense burden on property tax payers. This is an unprecedented opportunity to advance innovative cost saving solutions through the consolidation of special education, administrative and transportation services through our BOCES systems across the state.

The budget continues to build upon measures enacted over the past few years to reform our health care delivery system. The proposal lays out billions of dollars in savings by modernizing the Medicaid reimbursement formula to emphasize primary and preventative care and reforming our hospital, nursing home and home care reimbursement system. By extending the HEAL-NY capital funding for hospitals and streamlining access to Family Health Plus the Governor continues our reforms while protecting our critical health care institutions and the well-being of New York’s families.

The Executive Budget includes some long overdue changes that will cut costs, improve the environment and enhance the well-being of our most vulnerable. I applaud the Governor for his proposals to consolidate agencies performing duplicative and overlapping functions. Tough new restrictions on the Empire Zone Program will finally hold those benefiting accountable for the jobs they have promised to deliver our communities. The expansion of the bottle deposit law will have an immediate impact on reducing our waste stream and provide a strong dedicated source of revenue for our environmental initiatives. Finally in a move that will benefit countless children across the State, the Governor, for the first time in eighteen years, proposed an increase in the public assistance welfare grant.

By his unprecedented sixteen month budget proposal, the Governor has taken an important first step in the process of rethinking and reforming government in New York State. I look forward to working with him and my colleagues to enact a spending plan that reflects the realities of our fragile economy.

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