The Westchester County Association issued the following breakdown of Gov. David Paterson”™s 2010-2011 proposed budget. New York”™s fiscal year begins April 1.
“Totaling $134 billion ”“ including a comparatively modest spending increase of $787 million or 0.6 percent from the prior year ”“ the proposal is generally ”˜flat”™ from 2009-2010. His proposal is aimed at closing a projected $7.4 billion deficit in the current budget year as well as setting the stage for reducing future-year deficits of $14.3 billion in 2011-”™12, $18.3 billion in 2012-”™13, and $20.7 billion in 2013-”™14.
“The executive budget contains $1 billion in tax and fee increases, including:
- Allowing grocery stores to sell wine ($92 million generated).
- A new excise tax on syrup used in soft drinks and other beverages ($465 million).
- A dollar-per-pack increase in cigarettes ($218 million).
- Assessments on health care providers ($216 million).
- ”˜Improved”™ audit and compliance/tax enforcement actions ($221 million).
- Legalizing mixed martial arts ($2.1 million).
- Extending the hours of operation for video lottery terminals ($45 million).
- A new severance tax on natural gas production.
- Deployment of speed enforcement cameras ($32.9 million).”
In education, “the executive budget seeks savings of $1.1 billion in school aid, representing a 5 percent reduction,” the WCA reports. “State aid to public districts would total $20.5 billion in 2010-11. The Governor”™s budget would also reduce funding for after-school programs, both Advantage and Extended Day, by nearly $15 million.”
In the arena of medical care, the WCA said:
“If no action was taken to control costs, the governor says total federal, state and county Medicaid spending would reach $53.1 billion in 2010-2011, increasing more than 5 percent. The executive budget proposes $1.9 billion in “gap closing” measures in health care, including:
- Almost $1 billion in provider and program reductions.
- $890.2 million in ”˜dedicated taxes and assessments to finance health care investments.”™
- Reductions in indigent care reimbursements to hospitals ($67.7 million).
- Increased assessments on inpatient services ($130.2 million).”
- Regarding economic development, the WCA said the proposed budget “contains a familiar proposal to restructure the state’s economic development activities by merging DED and ESDC into the New York State Job Development Corporation (JDC). This merger is intended improve the effectiveness of programs and streamline delivery of services. This consolidation would also save $4.7 million annually by integrating operations and eliminating duplicative functions. NYSTAR would continue its work in partnership with the new JDC”.
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Also, the WCA reported, “The Executive budget proposes the establishment of three new economic development programs:
- Excelsior Jobs Program;
- Small Business Revolving Loan Fund;
- New Technology Seed Fund.”
For the complete WCA statement, including details of the three economic development programs, changes in the Aid and Incentives to Municipalities equation, work force reductions and a budget timetable, visit the WCA”™s website and click the “in the news” button.
