Cahill Reacts to Governor Cuomo’s Budget Presentation

February 1, 2011

(Albany, NY) Assemblymember Kevin Cahill (D- Ulster, Dutchess) reacted to the budget presentation given by Governor Cuomo today in the following statement:

"Today Governor Cuomo presented a plan to dramatically overhaul New York State’s budget. That is exactly what needs to be done. We cannot afford to tinker around the edges. New Yorkers are demanding real reforms and I am prepared to work with the Governor to deliver them.

"The Executive Budget reflects our fiscal reality and proposes the significant spending reductions that will be necessary to bring our finances back on track. We are at a critical juncture and the decisions we make in this year’s budget have the potential to define the long-term future of our State. As we work to return prosperity, we have to continue to take aggressive steps to modernize our state and local governments while delivering on commitments to reform the budget process. It is important that we take smart actions to curb waste while streamlining government so we can continue to serve our most vulnerable residents.

"The Governor has proposed a $1.5 billion cut to education spending. Even in view of the record increases in state aid to education over the last decade (almost doubling) this 7.3% reduction, when combined with legislation to cap property taxes at 2%, could seriously hinder the ability of schools to provide our children with the education they deserve. If these proposals move forward, they must be accompanied with mandate relief, incentives for consolidation and shared services and protections that will ensure equity for low-income communities.

"By including two separate funding streams of $250 million each to encourage improved school performance and shared service initiatives, the Executive advances a means by which we can determine best practices and identify innovation. We should be doing more. I am pursuing enactment of the 21st Century Schools Act (A416), a plan for shared services and school district reorganizations across the state. The Equity in Education Act (A.447), my proposal to eliminate school property taxes by shifting to a progressive education income tax surcharge, will also remain a top priority.

"The Executive Budget continues the string of significant cuts to our SUNY institutions, ordering an additional $115.4 million reduction in funding. Community colleges would also be hit with a 10% cut in state aid. These institutions are vital to the state economy as we rely on them to educate our workforce and produce the innovations that will drive our economic resurgence. I applaud the Governor for protecting access by holding the line on tuition and financial aid, but we cannot let these cuts threaten quality. I will continue to fight for full funding of our institutions of public higher education.

"Proposed cuts to Medicaid -- $2.85 billion – represent the largest spending reductions in the Executive Budget. However, the Governor has not yet provided details on what aspects of the program will be cut, preferring instead to rely on recommendations from his Medicaid Redesign Team due by March 1st. I agree that Medicaid spending must be reined in, which is why I have been working to make changes that will shift our health care delivery mechanisms to a more cost effective preventive care model. In doing so, we must be cognizant of the impact on our health care institutions so as not to risk a dearth of access to care in certain communities or regions.

"Even as the state continues to grapple with fiscal challenges, we cannot lose sight of the need to create jobs and attract new industries. To that end the Governor has proposed the establishment of Regional Economic Development Councils that will serve as one-stop entities for businesses seeking to utilize the broad range of incentives the state has to offer. The Executive is backing the Councils with a $130 million competitive grant fund that will allow proposals to be shaped to take advantage of regional assets instead of the current one-size fits all approach. These are concepts I have long supported and I am eager to work closely with the Governor on the details.

"Also included in the budget is a permanent replacement for the Power For Jobs Program. As Chair of the Assembly Energy Committee, my colleagues and I have been working diligently to create a new program to assist businesses and not-for-profits from all across the state with their energy costs. This issue has long been a matter subject to stand-alone legislation. However, wrapping it into the budget could create a serious impediment to its enactment. I urge the Governor to reconsider his proposal and remove it in his twenty-one day amendments. That said, I will continue to negotiate in earnest with the Executive and my colleagues in the Senate to develop a permanent program that is fair to upstate residential ratepayers and provides equal opportunities for job growth statewide.

"The Executive Budget includes $3.3 billion in property tax relief by continuing funding for the STAR program. It also provides for much-needed opportunities for local governments to lower property taxes through consolidations and shared services. The proposal would establish a $79 million fund to encourage municipalities and citizens to move ahead with modernization plans.

"Finally, the Executive Budget provides for a 10% across the board reduction for state operations. The Governor calls for $550 million reduction in workforce spending. This action could result in 9,800 job cuts. I urge the Governor to work closely with our public employees to negotiate a final plan that minimizes disruption of services the public needs and the pain to the families of state employees throughout New York.

"Governor Cuomo has portrayed New York State as being at a crossroads. I agree that we have an opportunity to fundamentally reform our budget by addressing our immediate problems while setting the state on the path to long term economic stability. I will be studying the Governor’s proposal further and pledge to work diligently toward the early passage of a responsible budget to best serve the needs of the people of Ulster and Dutchess Counties and indeed all New Yorkers."

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