Pataki Uses Veto To Block NY State Budget

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

16 May 2003

Carrying out his threat to block the New York state budget, Governor George Pataki put his name to 119 vetoes this week as the debate over tax and spending plans rages on.

The governor has consistently criticised the legislature's proposals for the budget, which involve raising New York City income taxes and sales tax at the same time as increasing spending, arguing the measures will have a detrimental effect on the local economy.

The budget, which is now over forty days late, seeks to address an $11.5 billion shortfall. Pataki's preferred method for reducing this is through spending cuts and bond sales, as opposed to tax increases.

"It's become very clear that in many different areas this budget will not only harm our state's economy, dramatically increase the tax burden, and hurt our fiscal condition going forward, but instead of putting these difficult economic and fiscal times behind us, will make them even worse in the future," Pataki told a press conference this week.

Both Houses are now likely to initiate a procedure to override Mr. Pataki's veto, which State Senate majority leader Joseph Bruno predicts this could be completed by the end of the week. To succeed, a two thirds majority vote is required in each chamber.

This should be comfortably achieved in the State Assembly as over 100 of the 150 members are Democrats. The Senate meanwhile, may pose a more difficult proposition for the senior lawmakers, since 38 of the 62 members are Republican. However, Bruno is confident he will have enough Democrat support to override the veto.

New York City Mayor Michael Bloomberg meanwhile has made it plain which budget option he prefers in comments reported by the NY Times this week: "It is very clear that the city's best interests are served by the legislative budget restorations and the corresponding city revenue bill, even if it has to be done through an override," observed Bloomberg. "Together, these actions address $2.7 billion of our fiscal needs."

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