Throughout this economic downturn, we have been inundated with startling statistics about how the poor economy is affecting our state. Recently, it was reported that more than 800,000 New Yorkers are out of work. To put this into perspective, you could fill up about 17 Yankee Stadiums with the number of New Yorkers who need a job. Here is another startling statistic for you: the Assembly Minority Conference has completed our fiscal analysis of the governor’s proposed budget and we have concluded that the spending plan would cost the typical New York family of four an additional $1,812 annually.
The analysis examined all the taxes, fees, surcharges and other actions – such as the annual cost of state debt service – contained within the governor’s spending plan. The assumptions for an average family of four were based on a state population of 19.6 million, with 4.9 million families of four and a median household income of $53,448. The total figure includes an increase to the utilities tax on energy, the cost to each family in new state debt, an increase in health insurance premiums for families covered by small businesses, and a property tax increase which is a result of reductions in school aid and aid to municipalities. These figures will affect almost every family; but, if you are a smoker, have a child in college, or even if you like to enjoy an occasional soft drink, expect your taxes to increase in these areas as well.
The two main reasons that New York is in this current fiscal crisis is due to over-spending and over-taxing. These are not solutions to our problem, but the problem itself. The real solutions lie in implementing a statewide spending cap to control Albany’s spending addiction, reducing Medicaid fraud and abuse so that your tax dollars are not being wasted, and streamlining state government by consolidating certain administrative agencies with overlapping functions, and banning unfunded mandates so the state is not forcing local municipalities to spend money that they don’t have. These solutions would prevent the major tax increases that are included in the governor’s proposed budget, and I hope that the governor, as well as the Senate and Assembly, will take these suggestions seriously and include them in the 2010-11 Enacted State Budget.
As always, if you have any questions or concerns on this or any other state issue, please don’t hesitate to contact me at either my Johnstown office at (518) 762-6486, or my Herkimer office at (315) 866-1632.