Cahill Announces Passage of 2011-12 Budget

Balanced budget passes on time

March 31, 2011

Albany – Assemblymember Kevin Cahill (D- Ulster, Dutchess) announced the passage of a 2011-2012 state budget that eliminates a $10 billion deficit, before the April 1st budget deadline. The approximately $132.5 billion budget reduces spending overall by over two percent from the current year.

“Very difficult choices had to be made to close the deficit,” said Assemblymember Cahill. “We worked with Governor Cuomo to enact a bipartisan, fiscally responsible plan that cuts spending while protecting New York’s working families.”

The plan includes historic reforms that redesign state government, create efficiencies through consolidation, tie spending increases for education and Medicaid to inflation, and transform the future budgeting process.

“Our budget agreement reduces spending and includes provisions to establish regional economic development councils, bring performance funding to education, redesign Medicaid, and shift education and Medicaid spending to a two year cycle. We were able to implement these new provisions and reach our goal without borrowing, and succeeded in trimming next year's projected budget deficit from $15 billion to about $2 billion,” said Assemblymember Cahill. “It was crucial for us to provide adequate funding to help those citizens most in need, including seniors, at-risk youths, and children with special needs. The health and well-being of the most vulnerable members of our society should never be sacrificed.”

A major budget highlight includes an additional $272 million for education which includes restoration of some funding for school districts, schools for the blind and deaf (4201 schools) and summer school special education. These monies represent the largest restoration in the entire budget plan. Assemblymember Cahill helped lead these efforts while serving on the Joint Education Conference Committee.

“We were able to reverse some of the sharp cuts because we simply can’t afford to abandon our public schools or inflict more property taxes on homeowners,” said Assemblymember Cahill. “Even with these cuts, we continued our commitment to making education a top priority because we owe our children the best possible opportunities.”

The budget plan allots $88 million more for higher education, including restorations for community colleges, along with a provision that would enable SUNY to streamline its procurement processes and provide SUNY greater flexibility to engage in public-private partnerships. Additionally, benefits for doctors who agree to practice in areas with physician shortages and for nurses who agree to serve as educators in nursing programs were extended.

“We recognized that SUNY is a huge economic driver in our state, and provides an excellent opportunity at an affordable cost for so many people looking to further their education, helping them create their own paths to successful careers,” said Assemblymember Cahill. “It’s vital that we continue to grow and improve our colleges and universities so we can ensure that each student is acquiring the best education possible.”

The agreement also includes the creation of the Recharge New York Program to permanently replace the expiring Power for Jobs program. This initiative was spearheaded in the Assembly and statewide by Assemblymember Cahill.

“High energy costs will no longer stand in the way of businesses investing in New York,” said Assemblymember Cahill. “We heard time and again from industry and economic development leaders that the old approach was not working. The Recharge New York Program will help meet the energy needs of employers while providing New Yorkers with the assurance that their resources are being used efficiently and effectively.”

While the budget agreement allowed the Millionaire’s Tax to expire, despite the efforts put forth by the Assembly, other burdensome taxes, such as the 18-A assessment on utility bills and sales tax, were continued. The education and health care packages included competitive grant programs to spur innovation, but did not contain measures such as Assemblymember Cahill’s 21st Century Schools Act and other proposals to reduce costs by making health care safer. “The overall budget reflects our priorities along with our current fiscal condition, but clearly, there were some missed opportunities,” said Assemblymember Cahill. “It is my hope that we can continue this process of reform as the legislative session progresses.”

“Every state in our nation is struggling and sacrifices had to be made. We enacted a plan that protects core services and starts the process of reducing government spending through streamlining government agencies and curbing wasteful, duplicative services,” said Assemblymember Cahill. “Our fight is not over. We will remain vigilant in our efforts to renew New York’s economy, maintain the state’s fiscal stability and protect the many families struggling to make ends meet.”

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