Pataki Attacks New York State Budget Proposals

By Leroy Baker, Tax-News.com, New York

05 May 2003

New York Governor George Pataki has severely criticised the state budget package which he claims will worsen the state's finances and cost the average family around $2,000 per year in extra taxes.

"The legislative spending proposal will be a fiscal and economic train wreck to the people of New York," Pataki observed, according to an Associated Press report. "It has the largest tax increase ever proposed by the state legislature in the history of New York state," the Governor claimed, continuing: "Obviously, when you have a multibillion tax increase it's going to hurt the economy. It's going to hurt our ability to create jobs."

Pataki's office has calculated that the current budget proposals will create a shortfall of $1.5 billion, even though the current law requires both the governor and legislature to pass a balanced budget. Pataki claims that this will increase the state's overall deficit to $13 billion inside two years.

However, as the political tug of war over the budget proposal rages on, it is unclear exactly what the true position with regard to the state's finances really is. Senate Majority Leader, Joseph Bruno refutes Pataki's claims and points to the Senate majority's fiscal projection of available funds as the most accurate source of data.

Other measures expected to feature in the budget are a state aid package for the cash-strapped city of New York (thought to be in the region of $1 to $1.4 billion), and restoration of about $1 billion worth of cuts previously made by Pataki to the health care budget.

Defending the budget plan, Richard Gottfried, a Manhattan Democrat and chairman of the Assembly's health committee commented: "What we are about is not funding frivolous spending or unnecessary spending," adding: "What we are talking about in this legislation is meeting our profound obligations to our constituents."

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