Assembly Advances 2010-2011 Budget Plan

March 24, 2010

Albany – In this difficult fiscal climate, many states across the nation are turning to drastic measures to curtail budget expenses. Schools in 17 different states have moved to a 4 day week. California released tens of thousands of prisoners. Arizona repealed the child health insurance program. Virtually every other state, like us, is facing unprecedented fiscal strife. New York has managed to weather the storm while protecting vital services.

Assemblymember Kevin Cahill (D-Ulster/Dutchess) announced that the Assembly is moving ahead with its 2010-2011 budget proposal. The plan closes an estimated $9 billion deficit and restores some of the Governor’s cuts to education, health care, state parks and college tuition assistance without raising taxes.

“These are tough times and they call for tough decisions. The Assembly is advancing a fiscally responsible and balanced state budget proposal that will enable New York to avoid the extreme actions that have crippled other states,” said Assemblymember Cahill. “Our national economy continues to be in fragile condition and families are struggling, which is why I am supporting a budget that maintains vital services without increasing taxes. That is exactly what the Assembly’s plan does.”

The budget resolution calls for the restoration of $600 million of the Governor’s cuts to education aid. The Executive Budget, submitted in January, proposed reducing state aid for schools by $1.4 billion.

"The cuts proposed in the Executive Budget would result in regressive property tax increases, unacceptable cutbacks and layoffs," said Assemblymember Cahill. “The Assembly’s plan significantly offsets those cuts and preserves the STAR property tax relief exemption allowing us to keep our commitment to provide a quality education to all of our children."

The Assembly also rejected the Governor’s call for a tax on soft drinks. Under the Executive’s proposal, the revenue from the tax was to be dedicated to health programs. The Assembly’s budget provides alternative sources of funding to make up for cuts to the health care system. The plan would also assure over $80 million in funding restorations for hospitals, nursing homes and home care.

“The measures put forth by the Assembly allow the state to stay on the path to a more cost effective health care delivery system without jeopardizing the quality of patient care,” said Assemblymember Cahill. “We reverse some damaging cuts that would have severely limited access to health care in our communities.”

The proposal also saves over 90 state parks and historic sites from closure through the restoration of $11.25 million of a proposed $25 million cut to the Office of Parks, Recreation and Historic Preservation. Parks have experienced a nearly forty percent cut in their budget over the last two years. With this restoration, New York residents will still have access to affordable outdoor recreational activities, and local businesses will continue to thrive on tourism revenue generated from these sites.

“Throughout the budget negotiation process, I have been committed to keeping our parks open,” said Assemblymember Cahill. “I brought the discussion to the public and to my colleagues in the legislature, where we worked to ensure that these vital facilities would remain available. I know the importance of Minnewaska State Park and the historic Senate House to our communities, and these institutions are too valuable to lose.”

Governor Paterson had proposed a one time revenue measure that would have allowed the sale of wine in grocery stores. The Assembly plan does not include this action.

“I have been leading the fight against this proposal and standing up for small businesses for the last two budget cycles,” said Assemblymember Cahill. “This is nothing more than a money grab that would create an unfair playing field for untold numbers of family-owned businesses across the state.”

The Assembly budget plan fully restores the Tuition Assistance Program. Moreover, the Assembly rejected the Governor’s move that would have resulted in SUNY schools unilaterally raising tuition. The proposal also restores community college funding to the full $2,545 per full time equivalent.

"Preserving the affordability, accessibility and quality of our public university system is critical, especially during these tough times,” said Assemblymember Cahill. “Our plan protects students and faculty from untenable cuts because we recognize that SUNY is the most effective engine of opportunity and economic growth in New York.”

While addressing the 2010-2011 spending plan, the Assembly has also put forth significant reforms to rules that govern the state’s budgeting practices. By adopting changes proposed by Lieutenant Governor Richard Ravitch and requiring New York to shift to Generally Accepted Accounting Principles (GAAP) the Assembly’s plan effectively caps spending for this and future years.

The Assembly’s action follows the Senate’s passage of their own budget resolution on Monday. The two houses will now resolve the differences between their respective proposals through a public conference committee process with a goal of passing a final budget by the end of the week.

“Budget negotiations will continue as the Legislature and Executive work to come to an agreement. I am confident that these talks will result in the delivery of a fiscally sound budget that will produce significant savings for years to come,” Assemblymember Cahill concluded.

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