Despite falling tax revenues and a bleak economy, Gov. David Paterson and state lawmakers have agreed on a 2009-10 budget that will increase state spending next year by nearly 9 percent, or $10.5 billion, officials said Sunday.
Helping to pay for it is $5.3 billion in new taxes and fees and $6.2 billion in federal stimulus money, which accounts for a bulk of the higher spending.
Lawmakers are expected to vote to approve the whopping $131.8 billion package Tuesday and Wednesday. The new fiscal year starts Wednesday, so it appears all the bills won’t be passed on time.
Paterson and the Democratic leaders who control the Legislature praised the plan as one that closes a huge potential budget gap of $17.7 billion, retains essential services and cuts future deficits by 80 percent.
“We have produced a budget that provides a solid foundation to move forward and address the challenges ahead,’’ said the Democratic governor, who has been heavily criticized by special-interest groups for cuts to education and health care.
Republicans blasted the budget as bloated and wasteful, saying it only adds to New Yorkers’ tax burden and hurts the sagging economy.
“The end result of the most secret budget process in state history is a plan that taxes too much, spends too much and does nothing to create jobs,” said Senate Minority Leader Dean Skelos, R-Nassau County, who said, “The New York City Democrats went nuts on taxes and spending.’’
Details of the spending plan emerged Sunday after weeks of feverish behind-closed-doors negotiations among Paterson and legislative leaders, who claimed they could not have made tough decisions if the public was watching. The lack of transparency has drawn criticism from good-government groups.
Among the budget highlights:—Higher income taxes on married taxpayers who make more than $250,000 and some single taxpayers who make as low as $200,000. The rate will go up to 7.85 percent, from the current 6.85 percent, on all adjusted gross income over $250,000 and under $500,000 for those taxpayers. Income above $500,000 would be taxed at 8.97 percent.—No increase in operating aid to local school districts, but about $800 million more in federal aid for special-education programs.—Higher taxes on utility bills, some insurance policies and beer and wine and higher charges to register vehicles and renew drivers’ licenses, totaling about $1.3 billion.—The elimination of the STAR property-tax rebate program, costing residential property taxpayers $1.5 billion.—Imposition of a nickel deposit on bottles of water, with the state keeping 80 percent of the roughly $100 million in revenue.—Cuts of $2.3 billion to health care – less than the $3.5 billion Paterson originally proposed.—A cut of 8,900 state workers, mostly through layoffs, starting in July. The workers are slated to get a 3 percent raise on April 1.
5 Comments
Isn’t that why we voted for President Obama , to bring in a single payer health care system? Not with what we are going to get-
auditors, not doctors in wealthy insurence companies dishing out limited services. Being a moderate voter I think one of the most important issues to get Americans back to work is Health care? Large and small businesses in this America have to negotiate with the middle manInsurance companies! They are the inter-mediator, we can well do without? If car manufacturing companies didn’t have to pay extra for health care for it’s hundreds of thousands of workers. Then we would be on a level-playing-field, with our foreign competitors who are subsidized by their governments? Why is it European countries like France, United Kingdom have a single payer system through the government thatWORKS! The usual critics have everything to gain, and so much more to lose-they will put every obstacle in the way of Universal health care. Before Britain was invaded by immigrants under the European Common Market, my family had excellent Social health care.Every employer and every worker paid into the system and the outcome insured you of hospitalization, doctor visits, specialists, eye and teeth care. Then of course the majority of upper class Americans don’t like the idea, because they can well afford the co-pays, premiums that the insurance companies add to their exorbitant fees. But then they get the best service, including home visits. The mechanics of health care in the US is no different to England’s, including sitting in the waiting room and seeing the physician. If you needed to see a specialist you was referred by letter. The Democrats will state they are working for the American people, but for some that’s an outright fallacy? It’s unlikely we will never get rid of the greedy insurance companies-
until we have taxpayer Campaign contributions for many corrupt politicians. Same with E-Verify for US Workers, because big business didn’t like being cut off from cheap illegal labor. Of course the special interest lobbyists, will distort the truth to get voters to deny the 47 uninsured Americans (NOT ILLEGAL ALIENS) peace of mindforOUR-families and children.They’ve RAISED state spending by 10%!!!!!!!!!!!!!!!!!!!!! They’ve eliminated STAR!!!!!!!!! THEY’VE raised taxes on UTILITIES!!!!!!!!!! VEHICLES AND DRIVERS LICENSES RAISED!!!!! They advise localities to RAISE SCHOOL TAXES!!!!!!!!!!! TAXES, TAXES, TAXES!!!!!!!!!!! SPEND SPEND SPEND!!!!!!!!! SICK. WE’RE ALMOST IN A DEPRESSION. MAYBE WE ARE. THIS IS THEIR ANSWER. THEY’RE LAYING OFF COPS AND OPENING THE PRISONS. GET READY TO RUMBLE
And all of this, Rambo, is after 25 billion dollars shrink-wrapped and shipped to NY in the form of a federal bailout! We are truly being led to the edge of the precipice.
Is it the basic star that reimburses school districts or the ‘star rebate checks’ that people have received the past couple of years?
Why not REDUCE salaries of elected officials…they do nothing anyway.
This it absolutely outrageous!!! All should be thrown out that vote for this!!! Give us all a break, you robbers!!!!