No Sense

Which is it? Has New York Governor David Paterson called for wholesale cuts in the state budget in the range of 5-10% (equating to several billion dollars in cuts), or has he signed off on an increase of 4.9%?

Well, it depends on which local paper you're reading. Heck, it depends on which paragraph of some articles you're reading.

The Sun notes that the Governor wants cuts. The NY Post headlines that Paterson wants $12 billion in cuts, which equates to about 10% of the state budget. However, let's read on in that story:

Paterson said his aim was to cut spending by 5 to 10 percent "off the top and not balance the budget on those who need services, on the middle class, or people who are lucky enough to make a million dollars."

Hours later, he and legislative leaders finalized details on the budget for the current fiscal year, which began April 1.

Officials said it will increase spending by 4.9 percent and raise $429 million in business-tax "loophole closures" and another $130 million in new taxes and fees.

The new budget, which does not include a Democratic Assembly proposal to increase taxes on millionaires, adds $1.8 billion in new school funding, including 38 percent, or $684 million, for the city.

So, he was talking out of one side of his mouth, and with the other signed off on a huge spending increase despite the critical health of the state economy. Spending is increased by nearly 5% despite a slowing economy, top tax earners sending in much lower tax revenues compared with a year ago, and Paterson's own dire warnings about the state economy slowing.

Once again, there's no surprise as to why the state is in such a fiscal mess. No one wants to confront the reality of a bloated state budget that lives well outside the means of the state. Sure, Paterson can talk all he wants about budget cuts but when push comes to shove, he did absolutely nothing to reduce spending whatsoever. Indeed, he signed off on tax and spending increases.

The Times Union highlights some of the changes in the state budget, and it takes creative accounting to somehow claim that the budget is lower than past years.

Both the Senate and Assembly are set this morning to review and wrap up the $121.7 billion budget for 2008-2009, up 4.9 percent from last year's all-funds budget.


"I think it's a done deal," said Assembly Majority Leader Ron Canestrari, D-Cohoes. Several senators concurred.

The budget is expected to raise state operating funds, which don't include capital and federal dollars, to $80.5 billion, up 4.5 percent from last year's budget, said Jeffrey Gordon, a spokesman for the Division of Budget.

He said the budget is the first in a decade to come in lower than the executive budget plan. Gov. Eliot Spitzer called for $124.2 billion in all funds, and $81.6 billion in state operating funds.

The Times Union also highlights that my alma mater, the University at Albany isn't going to get funding for a football stadium, but funds are provided for a Campus Center project and a new School of Business building. At least some of the priorities are right there.