A budget for lean times
Gov. David Paterson may have made some adjustments to the state”™s 2008-2009 budget and enacted it in record time, but in the final analysis, businesses and rank-and-file citizens will be paying more, enjoying it less and watching their pocketbooks.
Paterson, referring to the “rapidly deteriorating economy” in his April 10 announcement of the state”™s enacted 2008-2009 fiscal plan said, “the state had tightened its own belt so it could continue to provide critical support” to the region.
White Plains Assemblyman Adam Bradley, a Democrat, noted it was the first time in his three terms in Albany that the final budget was less than what was originally requested by the governor.
“We were very cognizant of the fact we have an economy in decline,” Bradley said of the process. “Depending on how this recession plays out, we may have to come back and deal with revenues.”
Bradley cited retaining STAR tax breaks as “very vital” to the region. “Not much that we give in Westchester comes back to help us,” he said. “STAR is the exception. STAR, Enhanced STAR and STAR rebates really help Westchester. One of the attractions of Westchester County is the quality of the schools. Increased school aid in the budget helps the students and helps to mitigate escalating property taxes.”
Bradley also praised budgetary aid for cities and towns, and early Wick”™s Law reforms ”“ that govern construction financing for public building ”“ as worthy budget accomplishments.
While some funding remained intact ”“ including $10 million for the Walkway over the Hudson, expected to be the world”™s longest pedestrian bridge linking Poughkeepsie and Highland Falls via an unused rail bridge ”“politicians to the north gave the reduced budget ”“ cut from $124 billion to $121.7 billion ”“ mixed reviews. Assemblyman Tom Kirwan, R/C-Newburgh, said he voted against it because “it spends and taxes too much. This year”™s budget is even more divorced from fiscal reality than those of previous years … loaded with pork- barrel spending.”
State Senate counterpart William Larkin, R/C-Cornwall-on-Hudson, said he believed “we negotiated a solid budget for our local schools” while noting New York spends the most money in the country per pupil. Assemblyman Joel Miller, R-Poughkeepsie, defined the state”™s budget as “smoke and mirrors” in a public statement.
While education will get a significant boost, many programs will feel the pinch of reduced spending, with less money for open space and other quality-of-life initiatives and more fees imposed in several areas, including tolls, registrations and state fees and “sin” taxes, including the proposed additional $1.50-per-pack tax on cigarettes.
The new budget reflects a 5 percent overall spending increase over the previous fiscal year.
Highlights of 2008-09 budget pertinent to the Hudson Valley/Westchester region:
Ӣ School Aid:
Total school aid to the Hudson Valley-Westchester region will increase to $2.10 billion, an increase of $170.2 million, or 8.8 percent.
Ӣ STAR property tax relief:
Total STAR relief to the Hudson Valley-Westchester region will increase to $952.4 million, an increase of $32.9 million, or 3.5 percent.
Ӣ Aid/Incentives to Municipalities (AIM):
Funding for the Hudson Valley-Westchester region will increase to $172.8 million, an increase of $10.6 million, or 6.5 percent.
Ӣ Metropolitan Transit Authority:
Total state operating aid to the MTA and commuter railroads will increase to $2.5 billion, an increase of $105.2 million, or 3.9 percent.
Many Albany watchers said the secrecy surrounding the last minute frenzy to get the budget passed in the wake of the Spitzer scandal will eventually come back to haunt lawmakers, predicting they will be back before 2008 is over to further trim spending.