Backdoor Borrowing - Creating a Fiscal Crisis for Future Generations

BACKDOOR BORROWING
Creating a Fiscal Crisis
for Future Generations

A Special Message from
ASSEMBLYMAN
Michael
Fitzpatrick

NYSA Seal

Dear Neighbor,

My goal is to make state government more efficient and transparent, yet less intrusive. The public’s outspoken support for this battle resulted in many of my ideas taking root over the past year.

This year, we again passed an on-time state budget and, though several worthy programs received much-needed funding, I am concerned with the amount of spending and overall lack of fiscal restraint, in particular, the practice of “backdoor” borrowing.

New Yorkers continually face higher taxes because of backdoor borrowing policies, and it happens without voter approval. As of March 31, 2005, total state-funded debt was $48.2 billion – an $11.2 billion increase from just four years ago. Backdoor borrowing makes up about 93 percent of outstanding state-funded debt, and the burden is crushing taxpayers and businesses.

It is imperative next year to capitalize on the momentum generated during the 2005 and 2006 legislative terms and finally bring meaningful debt reform to Albany.

State government must control spending and make the system more transparent to residents.

Sincerly,
signature
Michael Fitzpatrick

Assemblyman Michael Fitzpatrick
Wants to Stop “Backdoor” Borrowing

Assemblyman Fitzpatrick wants to:

Prohibit “backdoor” borrowing through legislation that would require all state borrowing proposals to be approved by voters, thus restoring state government accountability and transparency.

Approve “truth-in-borrowing legislation” that would provide residents and voters with greater accuracy and understanding of state borrowing practices. It requires bond acts placed on the ballot to list the total debt expected and the number of repayment years. Today’s borrowing propositions show only the principal amount of proposed debt, which is extremely misleading because the actual taxpayer cost of the debt should also include the interest to be paid over a certain number of years.

money

Contact Assemblyman Michael Fitzpatrick
50 Route 111 • Suite 202 • Smithtown, NY 11787 • (631) 724-2929

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