State Budget Agreement Reached; City Funding Drastically Cut

In a major victory for freshman Governor Andrew Cuomo, a budget agreement was reached on Sunday. Cuomo, Assembly Speaker Sheldon Silver (D-Manhattan) and Senate Majority Leader Dean Skelos (R-Long Island) announced they have agreed to an approximate $132.5 billion budget without adding new taxes.

“I have said that New York is at a crossroads—one road leading to further dysfunction and decline, the other towards fiscal responsibility and government efficiency. I believe this budget puts us on the right path,” Cuomo said.

In February, Cuomo’s executive budget called for massive cuts in local aid and education; the new agreement only restores approximately $250 million from Cuomo’s original budget proposal.

The new budget will put caps on education and Medicaid spending, eliminating what Cuomo’s office said is unsustainable yearly increases and overspending. Cuomo also included his plans to redesign Medicaid, instituting a global cap on Medicaid expenditures to $15 billion. Some state agencies will be consolidated and the budget also allows Cuomo to close prisons.

Adding cuts to other programs, legislators were able to add $272 million in education spending, $91 million in human services funding and $86 million for higher education.

For general education, the majority of the restorations were through the General Support for Public Schools program, which saw a restoration of $230 million. However, it is unclear how the money will be allocated throughout the state as of press time.

Title XX funding, which was originally cut and prompted Mayor Michael Bloomberg to threaten closing senior centers, was restored in human services. The Summer Youth Employment Program was also restored.

Assemblyman Mike Miller (D-Woodhaven) said he intends to vote for the upcoming budget bills. “For the past several months I have been fighting with my colleagues in the Assembly to restore funding for vital services such as our senior centers, the EPIC program, and Summer Youth Employment Programs. On these fronts we were successful,” Miller said. “Unfortunately, this bill is going to be very painful for lots of people.”

“My advice to those calling for dramatic cuts to the State budget is to be careful what you wish for because you might just get it. In the mean time, the hard working men and women of this state will continue to bear an unnecessary amount of responsibility for this economic recovery,” he added.

Senator Joe Addabbo (D-Howard Beach) agreed this was a difficult budget. He had issues with the Governor’s haste in pushing the budget. “It’s not necessarily the right budget. We can’t be rushing through a $130 billion budget just to say it’s on time. We have to do the right budget for the people,” Addabbo said.

However, Addabbo conceded this was a necessary budget that moves the state forward and reduces the deficit while cutting wasteful spending and without new taxes.

While state leaders were applauding the budget as a responsible plan during fiscal times, Bloomberg was incensed at what he said was the largest cut of state aid to New York City.

“[The budget] passes heavy new costs down to the city. Voters should remember that New York City was singled out by Albany and eliminated from the revenue sharing program, while other localities took no more than a three percent cut,” Bloomberg said in a statement.

Bloomberg said he appreciated the restoration in education, but the restorations were “merely a fraction” of what was needed to avoid teacher layoffs.

Addabbo countered that Bloomberg should not have based his executive budget on promises made by former Governor David Patterson. “The city is getting well over $500 million in total aid. There is enough revenue in the city’s budget to prevent cuts,” Addabbo said.

It seems likely the budget bills will pass, giving New York its first on time budget since 1983—led by then freshman Governor Mario Cuomo. On Tuesday, legislators began debating the bills and more are expected on Wednesday. The budget deadline is April 1.

Written by Eric Yun

 

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