The New York Budget Mess

$121 billion dollars in spending. That's still more than last year. If the state were truly serious at trying to hold spending to close the budget, it would make an attempt to keep state spending in line with last year. There's no pretense in doing so.

Governor Paterson turns out to be nothing more than the usual tax and spend Democrat, whose spending is couched in the language of fiscal responsibility, but whose actions show that he is dedicated to spending prodigious amounts of taxpayer money - and money that simply isn't there.

But it's the $4 billion in new fees and taxes that are sure to aggravate everyday New Yorkers, who would be paying more for a host of services:

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An "iPod tax" that charges state and local sales tax for "digitally delivered entertainment services" - in other words, that new Beyonce song you download.
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State sales tax at movie theaters, sporting events, taxis, buses, limousines and cable and satellite TV and radio.
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Costlier driving with the repeal of the 8-cents-per-gallon sales tax cap on motor and diesel motor fuel, plus and increase in the auto rental tax.
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Tuition increases as SUNY and CUNY, $620 and $600 a year respectively.
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A 50 cent tax on cigars. The current tax is equal to 37% of the wholesale price, or 34 cents a cigar.
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No more sales tax break on clothes and shoes worth $110 or less, except during two weeks a year.
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Higher taxes on wine, beer and flavored malt beverages. He would also impose an 18% tax on non-nutritional drinks like soda.
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The rich would pay more for luxury items through an additional 5% tax imposed on cars costing more than $60,000, aircraft costing more than $500,000, yachts costing at least $200,000 and jewelry and furs costing in excess of $20,000.
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In addition, a host of a fees, including those related to motor vehicle licensing and registration, parks and auto insurance, would go up, as would various state-imposed fines.

Even with the cuts, the 2009-10 budget would increase a little more than 1%, the smallest hike since 1996-97.

We're supposed to be thankful that state spending is increasing by little more than 1%? That's still an increase of $1.2 billion. Had the state committed to spending no more than it did just two years ago, it could find itself out of its fiscal mess without imposing new taxes and fees. Of course, unions and other entities that rely on higher state spending would find themselves in a bind because they wouldn't get higher reimbursements and payments.

Digging a little deeper, Paterson plans on nickle and diming taxpayers on everything from motor vehicle registrations (increasing fees to raise a hoped for $35 million)

Also, to clarify yesterday's post about state spending - the overall budget is $121 billion, of which $79 billion is state revenues. The rest is federal funds for a whole host of programs, including transfer payments for health care costs and transportation programs.