Paterson’s proposed reductions are spread across virtually every area of State spending, including education, health care, human services, the State workforce, and others. These actions would produce $2 billion of savings in 2008-09 and $3.2 billion in 2009-10.
“The deficit reduction plan I have put forward today represents a series of difficult choices across virtually every area of State spending,” said Governor Paterson. “The only way we are going to overcome this unprecedented crisis is through shared sacrifice.”
“The unfortunate reality is that many worthy programs with laudable goals, some of which I have supported in the past, will have to experience reductions in funding. These are not decisions that I have made lightly. With the State facing the largest deficits in its history, we have no other option but to make these tough but necessary choices. In times like this, government needs to put the public interest ahead of special interests – this budget plan tackles this financial crisis head-on and addresses the State's collective needs for fiscal responsibility.”
Low Income NY’ers Groan Under Budget Cutting Blade
Over 200 non-profit groups and service providers rallied against Governor Paterson’s announcement of additional budget cuts on the steps of City Hall on Wednesday. The groups that supply front line services to many of New York’s most vulnerable citizens called on Paterson to examine revenue options rather than gutting services in order to close the state’s huge budget gap.
Similar rallies were happening simultaneously across the state in Albany, Buffalo, Rochester, Utica, Binghamton, and in Central Islip on Long Island.
“Last week, Mayor Bloomberg leveled with New Yorkers that we cannot cut our way out of the city’s fiscal crisis. His cuts and tax increases will be painful but nothing compared to balancing the city or state budgets just by cutting services—that should not only undermine our ability to serve our most vulnerable, it would be devastating to our states future. Governor Paterson should follow the Mayor’s lead on taxes and call on all new Yorkers—not just the poorest New Yorkers—to sacrifice,” said Wayne Ho, Executive Director of the Coalition of Asian American Children and Families.
Ed Ott, Executive Director at the New York City Central Labor Council says this reminds him of what happened to New York in the 1970’s. “We went through this in the 70’s, it was the worst period in New York’s recent history, and it lasted over two decades. It is the job of the government to go and find the money and keep essential services. We don’t want another 25 bad years in this city. If they cut us out, we won’t climb out easily.”
“Attempting to close a budget gap of this size through cuts alone will wreck havoc on New York City and force us back into the bad old days of broken down subways, unsafe parks and failing schools and will impede state and local government from addressing already increasing human needs,” said Raquel Batista, Executive Director of the Northern Manhattan Coalition for Immigrant Rights.
“While no one likes tax increases, all New Yorkers will need to sacrifice to get our state through this crisis. Everyone, including New York’s wealthiest, will have to do their part. The most effective way to make the state stronger through this crisis and minimize the harm to the economy and vulnerable population is using every means at the state’s disposal, such as excess reserve funds and progressive revenue enhancements.” added James Parrot, Deputy Director & Chief Economist at the Fiscal Policy Institute.
According to Parrot, one of the main reasons government keeps avoiding raising taxes on high income earners is the fear that those people will move away from New York.
“In 2003 we had a state tax increase that helped close the budget gap. None of the dire forecasted consequences happened. High income earners didn’t move away… people at the top just aren’t paying their fair share,” explained Parrot. “We should demand that politicians provide evidence that high income earners will leave. They’re just making things up.”
