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 Hudson Valley.”
While some funding remained intact ”“ including $10 million for the Walkway over the Hudson (see related story) ”“ area politicians 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.
In the mid-Hudson Valley, here are county-by-county allocations for significant programs:
Dutchess:
Ӣ Allocated funding/projected savings to Medicaid Cap/Family Health Plus takeover by state: $8.1 million;
Ӣ Highway Improvement (CHIPS) increases to $2.59 million, an increase of $286,749, or 12.4 percent.
Orange County:
Ӣ Allocated funding/projected savings to Medicaid Cap/Family Health Plus takeover by state will total $12.3 million;
Ӣ Highway Improvement (CHIPS) Orange will see an increase of $218, 341, or 10.5 percent, to $2.29 million.
Rockland County:
Ӣ Allocated funding/projected savings to Medicaid Cap/Family Health Plus takeover by state will total $14.2 million;
Ӣ Highway Improvement (CHIPS)-An increase to $1.29 million, a total of $98,109, or 8.2 percent.
Ulster County:
Ӣ Allocated funding/projected savings to Medicaid Cap/Family Health Plus takeover by state will total $1.9 million;
Ӣ Highway Improvement (CHIPS) will see a 13.8 percent increase to $310,870, a total $2.56 million.
Putnam County:
Ӣ Allocated funding/projected savings to Medicaid Cap/Family Health Plus takeover by state will total $853,831;
Ӣ Highway Improvement (CHIPS): An increase of $85,895 (11.6 percent) for a total of $829,542.
Major mid-Hudson cities will see additional AIM (aid and incentives to municipalities funding) in the new budget:
Ӣ Poughkeepsie: $4.6 million;
Ӣ Kingston: $3.3 million; and
Middletown: $2.9 million.
While number crunching shows the counties will receive increases, they do not come without a price: taxes on “sins” will increase, as will state surcharges and taxes on businesses, leading critics of the accord to question the state”™s alleged pro-business stance.
As far as Assemblyman Marc Molinaro, R-Tivoli, is concerned, the state”™s budget process is “broken.”
Molinaro released his statement shortly before Paterson announced the passage. But Molinaro says he”™s right on target when it comes to needs of the mid-Hudson region: “Reform and real tax relief must be our priority. Despite the reforms we agreed to one year ago, the Assembly majority ignored their commitment to the transparency.”
The state”™s budget did address flooding problems throughout the region and allocated $14 million for the Greater Catskills flood remediation program. Eligible counties where homes have been damaged by flood since April 1, 2004 will allow for primary-homeowners to move from flood zones if their incomes fall within HUD guidelines. Funding will be administered though the Division of Housing and Community Renewal in Orange, Sullivan and Ulster counties.
Many Albany politico-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. In other words? Don”™t start spending it all quite yet.
