Politics on the Hudson

Lawmakers did not take action last week on a budget-cutting measure that would have made mid-year education reductions of $836 million this school year, as Gov. David Paterson had recommended. The education cuts are still on the table, but Paterson said today he is withdrawing his proposal because “it is unlikely the Legislature will consider them anytime soon.

“Therefore, we would be well into the final quarter of our fiscal year and even further into the school year before any action would likely occur,” the governor wrote in a letter to school board presidents and superintendents. “Unfortunately, this timing renders the proposal impractical for this fiscal year and I am withdrawing it.

But that means the state will need deeper reductions in education spending next year to close the budget deficit, which is $1.5 billion now and is expected to be $12.5 billion for 2009-10 and a combined $47 billion over four years. Paterson is scheduled to release his 2009-10 budget proposal Dec. 16, a month earlier than the tradition release date.

“I acknowledge that your costs are rising, but I believe all levels of government must reduce spending,” Paterson’s letter to school boards and superintendents said. “This year, I have reduced state agency spending by more than 10 percent. In this unprecedented fiscal crisis, school districts, like all levels of government, will have to take a similar approach and find ways to reduce costs and improve the efficiency of their operations on behalf of taxpayers.”

School leaders have said they expected to take a greater hit because the mid-year budget cuts were not approved, and districts have been planning their budgets conservatively.

Paterson’s letter said essentially that there are no sacred cows when it comes to cuts. (more…)

   The State University of New York’s student enrollment has reached a new high this year, despite having a net loss of $210 million in cuts by the governor and lawmakers. The student population at the 64-campus system grew by 12,226, almost 3 percent over last fall, to 439,624.

   In the past decade, SUNY has experienced a 20 percent boost in enrollment.

   “This record enrollment is more evidence that students recognize the educational excellence offered by our SUNY campuses,” Carl Hayden, SUNY Board of Trustees chairman, said in a statement. “In a time of difficult economic challenges for students and their families, SUNY clearly is the right choice for an accessible, affordable and high quality higher education experience.” 

   Earlier this week, SUNY trustees approved a plan to gradually increase tuition each year, with the intent of making tuition more predictable and paying for increased expenses at the school. The last time SUNY tuition went up was in 2003, when it increased 28 percent to $2,350.

   Gov. David Paterson has recommended a tuition hike of $300 a semester, starting in the spring. Trustees have endorsed upping tuition by $310 a semester under the same timetable. The governor will take the trustees’ tuition and budget recommendation into consideration before submitting his budget proposal next month.

   The enrollment growth shows there is a growing demand for access to public higher education in New York, which “must be met with the resources required for the continued delivery of educational opportunities that make SUNY a great public institution,” said SUNY Provost Risa Palm.

   About 450 librarians and library supporters rallied against budget cuts at the Capitol Tuesday. Gov. David Paterson has proposed $20 million in cuts to libraries, which the New York Library Association would bring library aid down for the state’s 73 library systems to a level not seen since 1993. State aid to libraries was flat between 1998 and 2006, according to the group. It was reduced from $103 million in 2007 to $100 million in April, then $99 million in August.

   “The library community is outraged by this proposal and the continued targeting of libraries to solve the state’s budget shortfalls. Library aid has already been cut twice this year, in April by 2 percent as part of the adopted 2008-09 state budget and then again at the special session in August by another 6 percent,” Michael Borges, executive director of the association, said in a statement.

   The governor called lawmakers into an emergency session Tuesday to make mid-year budget cuts, but legislators did not take any action. Paterson has warned that the state faces a budget deficit of $1.5 million and growing this year.

    “No other educational institutions have been targeted for a 20 percent cut in state funding. There seems to be no recognition by state budget makers that library usage has skyrocketed over the last year as more people turn to libraries for finding jobs, improving their literacy skills, and for free reading materials and programs for their families,” Borges said.

   The Campaign for Fiscal Equity could pursue reopening its court case or new litigation if state lawmakers and Gov. David Paterson implement the governor’s $836 million in cuts this school year to elementary and secondary schools in the state, Geri Palast, CFE’s executive director, said today.

   The reduction would hamper the state’s four-year plan to provide equitable funding in under-served districts statewide by boosting state education aid by more than $7 billion. (This is the second year.) The increase in funding was the state’s answer to a longstanding lawsuit filed on behalf of New York City schoolchildren. (CFE filed that lawsuit in 1993 and it wasn’t fully resolved until a few years ago.)

   The courts decided that all children in New York deserve a “sound basic education.” Lawmakers and the governor implemented a plan to boost funding to cover the whole state, although the courts prescribed that New York City schools receive a minimum increase of $1.93 billion over the four years plus inflation, Palast said.

   “Certainly, if the numbers were to fall below the court minimum we would certainly be able to go back to the court under the current case, and … we’re looking at all options,” she said. “I think our first choice is to try to resolve this with the governor, not in a litigation situation.”

   There is a potential for new litigation if the New York City numbers don’t work out or there is no solution worked out with Paterson and legislators, Palast said.

   She and other education and community advocates spoke out Monday against planned budget reductions to education. Under the Paterson proposal, the average classroom would lose $6,371, with some districts set to lose as much as $12,000 per classroom, according to an analysis by the labor-backed Fiscal Policy Institute. (more…)

   The state could could put a big dent in what it pays for funding school districts by changing employee contributions to health-care premiums and public pensions, 80 percent of school-board members said in an informal poll conducted by the state School Boards Association.

   In responding to an e-mail poll, 409 school-board members named the deficit-reduction measure that would have the most impact in their districts, rather than slashing $836 million this budget year, as Gov. David Paterson has proposed to help reduce the state budget. These are the results:

  —39 percent said requiring a minimum health-care contribution in employee contracts.

  —38 percent said requiring employee-pension contributions throughout the duration of employment.

  —23 percent said eliminating salary-step increases under expired contracts.  

   As for what individual school boards could do that would have the greatest effect; 26 percent said joining a health-care consortium; 20 percent said sharing services with other districts; 19 percent said joining a regional transportation agreement; 18 percent said participating in a regional energy-purchasing cooperative; and 17 percent said merging with another district.

   “These results indicate that Governor Paterson and state lawmakers should be trying to help school districts during this time of economic crisis, rather than making devastating mid-year cuts to education,” Timothy Kremer, head of the School Boards Association, said in a statement.

   The growth in personal income taxes continued to decline last month, according to state Comptroller Thomas DiNapoli’s October Cash Report. Business taxes were significantly below what they were last year and are expected to continue dropping off, the report said.

   “The big picture is becoming even more dismal,” DiNapoli said in releasing the report, a day before lawmakers meet in a special budget-cutting session to deal with the state’s $1.5 billion-and-growing deficit this fiscal year. “The numbers continue to fall, and it’s expected to get worse in December and January. The massive losses in the financial sector aren’t over yet.”

   DiNapoli encouraged lawmakers to take action now, rather than wait, as some legislative leaders have proposed.

   Here are some statistics from the report:

  —General fund revenues of $31.3 billion were $44.8 million below the Budget Division’s projections.

  —General fund business-tax collections were $35.6 million in October, slightly higher than anticipated. However, general-fund business tax collections have been reduced by more than $900 million since the fiscal year began.

  —Collections of personal income taxes were $251.8 million for October, $24.8 million below what was projected through October. Total personal income-tax collections of $14.5 billion are $1.8 billion higher than last year at this time. Withholding collections have remained strong throughout the year, but growth appears to be slowing.

  —Total spending of $67.5 billion was $437.9 million below what has been planned. The difference is mainly due to lower-than-expected spending for local assistance programs, and lower-than-anticipated spending for general state charges and capital projects. This was offset by slightly higher-than-expected spending for other state programs.

   Laura Anglin, Gov. David Paterson’s budget director, reminds the chief officials of the Senate and Assembly fiscal committees that the Division of Budget and the governor are open to suggestions about any proposals of their own for slashing $2 billion out of the state budget. The administration delivered copies of proposed legislation to the lawmakers last Thursday and has provided them and their staffs with nearly 50 “detailed briefings” on the proposal.

   Paterson has called lawmakers into special session tomorrow to cut spending. New York’s deficit is $1.5 billion and growing. Assembly and Senate leaders have not provided any of their own recommendations, and it’s possible that they may not get a lot done when they meet this week.

   Anglin reminded leaders that the process being used is the same one that was used for the “successful” budget-cutting session in August.

   “We remain available to discuss any questions. Additionally, as always, we will consider any alternative proposals or savings ideas you may have. We look forward to working together in cooperation to facilitate a consensus agreement that will bring our budget back into balance,” she wrote.

   More information is available about the governor’s proposed spending cuts at www.budget.state.ny.us.

   Gov. David Paterson is not too happy with Senate Majority Leader Dean Skelos’ remarks on the governor’s proposal for $2 billion in budget cuts this fiscal year. Paterson unveiled his plan today on reducing state spending. The state has a $1.5 billion budget gap that is expected to grow.

   Skelos, R-Nassau County, said lawmakers need to see what the governor proposes in his 2009-10 budget before it can act on anything else. Paterson has called lawmakers back to Albany Tuesday for a special budget-cutting session. Skelos is opposed to raising taxes or passing costs down to school districts and local governments.

   Here is what Paterson spokesman Errol Cockfield said in response:

   “It would be fiscally irresponsible to delay addressing the current-year $1.5 billion deficit by tying it into next year’s budget. The longer we wait to reduce spending, the more difficult and costly it will be to confront these serious budget gaps later.

   “Governor Paterson will begin tackling next year’s $12.5 billion deficit—the largest in our state’s history—when he proposes his budget five weeks early on Dec. 16. Right now, what the state needs is immediate action to close this year’s $1.5 billion gap so we can ensure the state’s long-term fiscal security. I am confident the Legislature will partner with us and rise to that challenge.”

   Here’s a breakdown of where Gov. David Paterson has identified $2 billion in budget cuts and savings. He has called legislators to Albany Tuesday for an emergency economic session and is asking them to cut $2 billion. The state deficit is $1.5 billion and growing, according to the governor, and is projected to be $12.5 billion in 2009-10.

   Medicaid/health care—$572 million, 28.3 percent

   School aid—$585 million, 28.9 percent

   Higher education—$115 million, 5.7 percent

   Other education—$36 million, 1.8 percent

   State workforce—$137 million, 6.8 percent

   Local governments—$134 million, 6.6 percent

   Human services—$20 million, 1 percent

   All other—$424 million, 21 percent

   As anticipated, State University of New York students are protesting the state’s budget cuts this year and their effect on campuses—fewer class offerings, larger classes, unfilled faculty positions, etc. Perhaps less expected are the calls by a number of students for regular, predictable tuition hikes. SUNY’s Student Assembly voted last month to back tuition increases. Student leaders at SUNY Geneseo in Livingston County are organizing a pro-tuition increase rally at their campus. They have collected more than 1,000 signatures to back up their case (see photo).

   Here’s an excerpt from the letter they’re sending to Gov. David Paterson:

   “The students favor a responsible and reasonable tuition policy that will provide predictable increases that directly benefit the students. Due to the budget cut’s impact on SUNY Geneseo, which has added up to a total of over $2 million, students are now in fear that the academic opportunities that were once promised to them could now be in danger of diminishing. The students are taking a stand to protect SUNY Geneseo’s integrity and to preserve it for prospective students.” 

   Presidents of the 30 state-operated SUNY campuses recommended their own plan yesterday for regular increases in tuition. They want tuition boosted $1,090 a year to begin with. The first half of that would be due in the spring semester. The last time SUNY’s tuition was increased was in 2003, when it went up to $4,350.     

SUNY’s state funds have been cut a few times this year, with a net impact of $210 million on the school, and the 64-campus system could face more cuts before the fiscal year ends March 31. Paterson has called a special meeting of the Legislature Tuesday to cut $2 billion out of the state’s spending plan because of New York’s economic crisis.

   Meanwhile, the New York Public Interest Research Group continues to oppose a system of gradual annual tuition increases. Tuition hikes don’t necessarily guarantee that the university will receive additional funding or enough funding, says Fran Clark, a spokesman for the student-directed group. (more…)