Senator John A. DeFrancisco (R-I-C, Syracuse) today announced that the New York State Legislature has agreed to cut over $400 million from the current 2008-09 State Budget. Governor Paterson called the State Legislature back to Albany for an extraordinary session yesterday to address the fiscal challenges facing New York.
Governor Paterson asked the Legislature to cut the budget in order to avoid an estimated $6.4 billion deficit for the next fiscal year. The Senate, the Assembly and the Governor have agreed to cut $427 million from the 2008-09 Budget, and have also agreed to cut $649 million in 2009-10. The $1.1 billion two-year total will reduce the projected deficit from $6.4 billion to $5.3 billion.
The Legislature was able to reduce the budget without making mid-year education cuts, harmful cuts to hospitals, TAP cuts, reductions in promised AIM funding, or cost shifts that would force local governments to raise taxes.
"I believe that we acted in a fiscally responsible manner and made the cuts necessary to address our State’s critical financial situation," said Senator DeFrancisco. "The cuts we made are modest and they are spread out so that they will not significantly affect one program or another. In addition, I am confident that these cuts will not harm the quality of education in our schools or the quality of care in our hospitals, and they will not pass the burden on to our local governments."
The Senate has also passed two other key pieces of legislation. Yesterday, the Senate passed bill (S.8738) to enact a constitutional spending cap. Under the cap, year-to-year State spending increases would be limited to 120 percent of the Consumer Price Index (CPI) or 4 percent, whichever is less. In any given year, fifty percent of tax revenue that exceeded the cap would be placed in a reserve fund and fifty percent would be returned to taxpayers in the form of direct tax rebates.
The Senate also passed bill (S.8736) to cap school property tax levy growth at four percent, or 120 percent of the inflation rate, whichever is less. The Assembly did not pass the Governor’s property tax cap during yesterday’s special session.
"My Senate Majority colleagues and I have responded to the taxpayers’ needs by passing the property tax cap and a constitutional spending cap," said Senator DeFrancisco. "Both of these measures would help us to avoid financial situations like the one we are in right now. Unfortunately, the Assembly did not follow our lead and pass these important bills." "I commend Governor Paterson for his leadership and for addressing our budget concerns for this year and next year," continued Senator DeFrancisco. "I am pleased that we came back early to make critical cuts, and in the next few weeks we will continue to work with the Governor and the Assembly to the address the upcoming 2009-10 State Budget. My Senate Majority colleagues and I are committed to looking for new ways to control State spending, while protecting vital services that New Yorkers rely on."
"I commend Governor Paterson for his leadership and for addressing our budget concerns for this year and next year," continued Senator DeFrancisco. "I am pleased that we came back early to make critical cuts, and in the next few weeks we will continue to work with the Governor and the Assembly to the address the upcoming 2009-10 State Budget. My Senate Majority colleagues and I are committed to looking for new ways to control State spending, while protecting vital services that New Yorkers rely on."
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