That said, DiNapoli is right in many of his points. Spending continues to increase and the so-called "tax cuts" Spitzer has promised are replaced by higher fees. Additionally, some changes to the health care insurance system will actually end up costing New Yorkers more money.
All the while legislators are telling us we actually have a surplus in the state coffers and using it as an excuse to restore funding to previous levels. Former Governor Pataki had a way of proposing reductions in spending only to make late hour restoration deals before the deadline; Spitzer has promised he will not engage in this practice and we will hold him to that promise.
As for DiNapoli's budget review -
While the Executive Budget incorporates certain positive measures, there are a number of areas where the proposal falls short of reform, and in fact, repeats many of the poor fiscal management practices adopted in prior years.
First, year-to-year spending growth is unsustainable.
In other words, big promises for which New Yorkers' taxes will pay. What about that surplus we have all been hearing so much about? One thing about that:
. . . expected growth does not include $2.7 billion in capital spending that is proposed to occur off-budget. Accounting for offbudget spending would increase All Funds spending growth to 7.0 percent and State Funds spending to 8.8 percent as compared to 2006-07.
I cannot imagine any Executive who would keep his or her job after spending $2.7 billion "off-budget." The problem is that 2.7 billion is such a small amount in the eyes of our government; that is less than 2% of the total budget, why should they care?
. . . the 2007-08 Executive Budget continues to generate sizable out-year gaps . . . The cause of the gaps can be attributed to spending, which is projected to grow nearly twice as fast as receipts and two and one-half times the projected average rate of inflation.
. . . the 2007-08 Executive Budget continues to rely on debt rather than substantially increasing pay-as-you-go (PAYGO) capital spending. Based on the Executive’s proposed Five-Year Capital Program and Financing Plan, outstanding State-Funded debt will increase to $65.6 billion by the end of 2011-12, representing a 27.1 percent increase from 2006-07 and a 97.9 percent increase from 1997.
Who is paying for this? I'm not paying for this, are you paying for this?
One high note was DiNapoli's statement that local governments Upstate will benefit significantly from 'shudder' economic development 'shudder' efforts. That is one term we are very weary of here at the WBP but we will wait to rule on this one.
Another interesting note:
Due to New York’s delay in purchasing new voting machines and implementing other components of HAVA, the federal government may require New York to return approximately $50 million of the $190 million in federal funding targeted for the purchase of new machines.
Way to go.
2 comments:
The whole voting machine fiasco is a good example of the dysfunction of the NYS Assembly. Last I heard, the plan was to push the decision out to the counties. So now each county election board has to choose which company to contract with. This is a recipe for voter confusion, as well as fraud and abuse. But at least the Assembly won't have its fingerprints on the decision if something goes wrong.
I am sure the tab for the late decision will be passed along as well. What's that saying? Something about something rolling downhill . . .
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