Politics on the Hudson

Should New York become jealous of New Jersey?

Gov. David Paterson today congratulated New Jersey’s Gov. Chris Christie and the Garden State’s Legislature for passing a  cap on the annual growth of property taxes at no more than 2 percent.

Paterson, who pushed for a 4-percent cap on local property taxes, said New Yorkers are still feeling the pain from the highest property taxes in the state.

“Passage of the tax cap was fair, fiscally responsible, and in the best interest of New Jersey families. Unfortunately, we New Yorkers are still waiting and suffering needlessly,” Paterson said in a statement.

The governor made a last-minute push for New York’s property taxes to be capped at 4 percent, but the measure was packaged with several controversial proposals such as selling wine in grocery stores. The issue never came to a vote in the Legislature and lawmakers left Albany without passing any property-tax relief.

“Congratulations to New Jersey’s long suffering taxpayers. Thanks to an effective, bipartisan effort between the state’s governor, Assembly and Senate, New Jersey home owners will now benefit from a welcome and much needed two percent cap on their property taxes with limited exceptions that puts final authority to exceed the cap in the hands of the taxpayers themselves. The new cap, which will be signed into law today by Republican Governor Chris Christie, passed the Democratic Legislature overwhelmingly, with a 73-4 vote in the Assembly yesterday, and by a 35-3 margin in the Senate last week.

Here’s the full statement:

“Passage of the tax cap was fair, fiscally responsible, and in the best interest of New Jersey families. Unfortunately, we New Yorkers are still waiting and suffering needlessly. Whereas New Jersey’s elected officials have found a way to put aside partisan sniping and election-year opportunism for the greater good of their state, New York officials have yet to come together to bring relief to our own constituents—this despite the fact that three out of four New Yorkers support a property tax cap.

“Our elected officials in Albany need to take a similar stand against runaway property taxes, and I am calling on the leaders of the Senate and Assembly to commit to taking an up or down vote on a property tax cap before the November elections. Every legislator in Albany should publicly state where he or she stands on this critical issue so that voters know who supports property tax reform. Increased State spending is not property tax relief, no matter how Albany politicians spin it during an election year. Spending increases lead to higher property taxes, which is why I vetoed $600 million in Legislative additions to the State’s education budget.

“I want to commend New Jersey’s Governor Christie, Senate President Steve Sweeney, Minority Leader Tom Kean, Assembly Speaker Sheila Oliver and Minority Leader Alex DeCroce for putting their political differences aside to bring real property tax relief to New Jersey families.

“Now it is time for a similar agreement in New York, where families have waited long enough for property tax relief. And if Albany fails to deliver once again, those New Yorkers may be forced to look to two our neighbors now – New Jersey and Massachusetts – to find the property tax relief they deserve here.”

Gov. David Paterson objected to a “poison pill” he says was inserted in an appropriation bill by lawmakers.

The veto message explains why Paterson axed $419 million in education aid for the fiscal year, and an additional $181 million for the following year. The bill included spending for some laudable programs, but the state simply couldn’t afford them, Paterson said.

But by including the amended education aid, Paterson couldn’t support its passage.

“Because this provision, in combination with other measures for additional spending, will adversely impact the state’s capacity to maintain a properly balance budget, provide for adequate fiscal reserves and ensure manageable out-year budget gaps, I must disapprove it as well,” Paterson wrote in the veto message.

The governor vetoed an estimated 6,700 vetoes and delivered them to the Legislature on Wednesday so they could formally take effect. Cuts included education aid, tuition assistance and legislative member items.

Here’s the veto message:

Veto #16

Gov. David Paterson may not be laying down his veto pen just yet.

Speaking on WCBS 880 this morning, the governor left open the possibility to vetoing the next revenue bill, which still must be approved by the Senate.

“I’ll either sign the legislation or I’ll veto it if I don’t think the revenues are real,” Paterson said.

The revenue bill was already approved by the Assembly, but the Senate left Albany last week without voting on it.

The vetoes of more than 6,700 spending items was officially delivered to the Legislature on Wednesday, which included cuts to education and non-profit groups. The governor cut member items—also known as legislative pork—that had already been approved in previous budget years but had to be re-appropriated in the 2010-11 budget year.

“There were a lot of very good groups that the Legislature wanted to fund,” Paterson said. “I didn’t see much what I would call pork. But the Legislature wants to spend on a number of things but not come up with the revenues.”

Paterson said signing or initialing all the vetoes took three pens.

He also had some advice for his successor (Paterson is not running for re-election). The governor said whoever takes over in January should use a tool he employed this year to get the budget through—namely the emergency appropriation mechanism that cannot be altered once submitted to the Legislature.

“They should put their cuts in emergency appropriations and that will stop the long budget delays we’ve had in the past,” Paterson said. “That’s the only way we’re going to get action. What made this situation more unique is that the state is teetering on insolvency.”

Gov. David Paterson’s office released a list this afternoon of all the vetoes—an estimated 6,709—from the state budget.

The cuts include $600 million in education aid and an estimated $180 million to $190 million in re-appropriated member items, commonly known as pork. Additional spending adding by the Legislature in a  budget bill last month, about $106 million for the Tuition Assistance Program and community colleges, was also vetoed from the budget.

Paterson’s office formally delivered the vetoes to the Assembly, Senate and secretary of state’s office this afternoon. The vetoes had to be delivered by July 9 in order for them to officially take effect. Spokesman Morgan Hook said Paterson either signed or initialed every veto, which took seven hours over a period of two days. Paterson’s office even set up an Internet feed depicting a marathon veto session with members of his counsel’s office.

Hook reiterated that Paterson is not using the vetoes to gain some sort of concession from the Legislature, such as approving a contingency plan in case $1 billion in Medicaid funding doesn’t come to the state or a plan to overhaul the state university system.

Lawmakers have until Dec. 31 to override the budget.

“We’re not negotiating on these points,” Hook said.

Assembly Speaker Sheldon Silver, D-Manhattan, released a statement expressing disappointment over the vetoes.

“We are saddened that the Governor also chose to renege on commitments of funding support from prior years to non-profits and community-based organizations that run free clinics, care for children and the elderly, offer counseling for crime victims and provide other vital services to New Yorkers throughout the state,” Silver said in the statement.

Here is an inventory of all the spending items that were vetoed, according to the governor’s office:

Final Veto Summary Report

Gov. David Paterson might be nursing a severe writer’s cramp this weekend.

Spokesman Morgan Hook said this afternoon that Paterson is done signing more than 6,900 vetoes.

Paterson began a marathon session on Thursday to complete the process of striking hundreds of millions of dollars from the $135.7 billion budget approved by the Legislature earlier this week. While Paterson made a big show of signing many of the statements—his office invited reporters to watch and then set up a live video feed on the Internet—Paterson most likely used an “autopen” for many of the signing statements.

The governor made good on the veto threat earlier this week when he struck $419 million in education aid from the budget at a news conference on Monday night. Also vetoed this week was about $193 million in legislative earmarks that had been approved in prior budget years, but was due to be re-appropriated.

Hook said the vetoes will be delivered to the Senate and Assembly so that they can formally take effect.  A full tally of what was vetoed from the budget will be available then, he said.

The governor issued the vetoes after lawmakers approved a series of spending bills this week in an attempt to complete the budget, but failed to put together a contingency plan in case the state loses up to $1 billion in Medicaid funding from the federal government.

Here Gov. David Paterson issuing his vetoes and explaining the process with administration lawyer Peter Kiernan.

Gov. David Paterson dug into a big stack of bills to veto today.

He is issuing more than 6,900 line-item vetoes which will eventually strike about $700 million in spending, including aid for education and the expansion of the Tuition Assistance Program. Paterson is also vetoing $193 million in member items, commonly derided as pork, that had already been approved.

“We don’t have the resources to accommodate these programs,” Paterson said. “Admittedly, some of them are good.”

Paterson must sign his name to each veto message while staff from his counsel’s office lines out the spending line. The stack in the governor’s conference room is about three feet high, but that only accounted for about 4,900 or so vetoes, said spokesman Morgan Hook. The veto has not been delivered to the Legislature as of this morning.

The governor has already vetoed $419 million in education spending added by the Legislature earlier this week. Paterson is still trying to get the Legislature to go along with a plan to provide a contingency account in case the state loses up to $1 billion in federal Medicaid funding.

But even if Paterson gets the contingency plan, it is unlikely he will rescind any vetoes.

“I’m not going to sit here and try to kill myself trying to sign 6,900 vetoes as some sort of ploy for negotiations,” he told reporters.

They may not have a lot in common, but Republican gubernatorial candidate Carl Paladino has the back of Gov. David Paterson when it comes to his 6,900 or so vetoes of new spending and legislative pork.

Paterson struck out $419 million in school aid and plans to veto an additional $300 million in member item projects after lawmakers passed their own budget without a contingency plan in case the state loses up $1 billion in federal Medicaid funding.

Paladino, who called the governor a “drug addict” last week, gave Paterson some credit.

“Governor David Paterson deserves credit for inking up his stamp to veto $419 million in education spending and for pledging to take aim at an additional $300 million in new spending and pork. I would not sign the very first extender and every extender thereafter until the runaway State Legislature stops wasting taxpayers’ money. But better late than never,” Paladino said. “This never-ending budget drama represents the kind of irresponsible government I will change when I become governor.”

Paladino, a developer and business man from Buffalo, is trying to wrest the GOP nomination for governor away from former Rep. Rick Lazio, the party’s preferred candidate by petitioning for a spot on the primary ballot. He is also trying to gain a spot on the November ballot on a third-party line.

Gov. David Paterson gave lawmakers credit today for doing what he believes they should have done three months ago: Introduce a budget of their own for consideration.

“I’m actually happy about that,” he said. “I’ve been asking for that as you for three months and perhaps the pressure of the emergency appropriation got them to finally do what they should have done three months ago.”

The Assembly and Senate announced a joint budget agreement on Saturday, one that seeks to partially rollback $1.1 billion in education cuts Paterson is proposing. The Legislature is seeking a $600 million restoration.

Paterson quickly convened an emergency session for 7 p.m. tonight.

The governor, speaking to reporters in New York City, said legislators being recalled to Albany a day earlier than expected, should pack some clothes in anticipation of a long slog. He also rejected the notion that “progress” has been made on the budget—a refrain the public has heard with regularity from Assembly Speaker Sheldon Silver, D-Manhattan, and Senate Democratic Leader John Sampson, D-Brooklyn.

“When there’s a budget done that will be a progress,” Paterson said. “The Legislature is going to stay there until this gets done.”

Gov. David Paterson’s 14th and final emergency-appropriation measure is the rest of the state spending plan for the 2010-11 fiscal year  includes $1.2 billion in taxes, a cap on property taxes at 4 percent, a plan for wine in grocery stores, but not the controversial excise tax on sugary drinks.

The measure is sure to be negotiated over the weekend and could change by the time it goes before lawmakers on Monday. But Paterson holds final approval over what the measure would look like. Failure to vote would mean a government shutdown.

Budget Director Robert Megna said the proposal fills a $9.2 billion budget gap. Lawmakers and Paterson have yet to reach a deal to close the gap since the 2010-11 fiscal year started April 1.

Megna said the $300 million restoration of school aid – less than the $400 million to $500 million lawmakers had sought—should be used to reduce the tax rate in districts, whose budgets mainly passed in May with the original cuts. The budget would also enact a suspension of the $110 exemption on sales tax for clothing and footwear starting Oct. 1 and running until April 1, 2011. (more…)