The New York Sun
January 19, 2005
Governor Proposes $105b Spending Plan, Zeroes in on Cuts to Health Care
By Julia Levy
Many
New Yorkers said they were disappointed by the overall levels of education
funds that Governor Pataki called for in his budget proposal yesterday.
At the same time, enthusiasm was expressed for the governor's proposal on
charter schools, which would facilitate the city's plan to open 50 more of
those schools.
Mr. Pataki's proposed budget offers $280 million in increased school aid
next fiscal year for New York City. That figure is $10 million less than
the increase in education money that the state Legislature voted for the
city this year.
Of the $280 million, about $85 million is meant to pay for annual increases
in operating expenses while $195 million is part of the governor's nod to
the Campaign for Fiscal Equity case. The latter component is part of what
Mr. Pataki calls his Sound Basic Education Aid Program, to target money for
high-needs urban school districts. The $195 million is only 14% of the $1.4
billion in annual increases in school subsidies recommended late last year
by a panel of court-appointed special referees in the Campaign for Fiscal
Equity's lawsuit.
A fellow Republican of Mr. Pataki's, Mayor Bloomberg, had a muted reaction yesterday, but Democratic legislators were fuming.
"I am tired of looking at my watch," the chairwoman of the City Council's
Committee on Education, Eva Moskowitz, said. "The governor should stop squirming
around compliance with the Campaign for Fiscal Equity lawsuit and start talking
seriously about New York City's court-ordered educational dollars."
Ms. Moskowitz called the proposal's dollar figures "inadequate." She also
said Mr. Pataki's desire to create a new Office of Educational Accountability
and Efficiency would "create more education bureaucracy under the guise of
accountability."
The council speaker, Gifford Miller, accused the governor of continuing to "shortchange" city students.
The chairman of the state Assembly's Committee on Education, Steven Sanders
of Manhattan, said the governor is apparently "pretending" there is no court
order to boost education aid to New York City. He said Mr. Bloomberg should
make an "unambiguous, immediate statement that the governor's proposal is
unacceptable."
"The governor pretends that there was never a CFE case. He pretends that
there was never a Court of Appeals decision in that case. He pretends as
if there wasn't a special referee panel appointed by the court," he said.
"What the governor has proposed is business as usual. New York City gets
shafted."
Democratic politicians were not the only ones deriding the governor's proposal.
The president of the United Federation of Teachers, Randi Weingarten, called
Mr. Pataki's proposal "deja vu all over again." She said the key players
in the Fiscal Equity case should have finished fighting over education funds
last year, so that children could already be benefiting from more school
aid. Ms. Weingarten was a member of the Zarb Commission, created by the governor
to find a solution to the school-funds mandate.
Predictably, the executive director of the Campaign for Fiscal Equity, Michael
Rebell, was also disappointed by the governor's proposal.
"What he seems to be doing is rehashing the same numbers and concepts that
he said at this point last year," Mr. Rebell said. "For a governor who has
said he was going to come up with bold ideas, he's not putting forward anything
that has a chance of solving these problems."
He said even the source of the education funds are "not real," as much of
the money would be coming from video lottery terminals proposed by the governor,
but not yet approved by the Legislature.
The governor can amend his proposal in the next 30 days. After that, the
Legislature can approve the budget, reject it, or decrease his proposed education
spending. Because of a recent court ruling, legislators cannot vote to boost
the governor's spending proposals.
Although New York City observers were riled up yesterday over the schools
budget, some applauded the governor's proposal not to count charter schools
approved by the city against the statewide cap on new charter schools. If
the change is not implemented, the 100 charter schools sanctioned by state
law will be used up in the next few years.
"We applaud the governor for exempting charter schools authorized by the
chancellor from the state's cap," a spokeswoman for the Department of Education,
Michele McManus Higgins, said.
The president of the New York Charter Schools Association, Bill Phillips,
said there are 7,400 children enrolled in New York City charter schools and
another 8,000 on waiting lists. Not counting chancellor-approved charter
schools against the statewide cap of 100, he said, would "remove the greatest
source of pressure."
Mr. Sanders, though, said it's too soon to get excited. Mr. Pataki's proposal
would require the Legislature to amend the charter school law - something
that the assemblyman said is unlikely.
Speech Highlights
SOURCE: GOVERNOR PATAKI
Highlights of the 2005-06 state budget Governor Pataki proposed yesterday
to the state Legislature for the fiscal year beginning April 1.
Overall spending of $105.5 billion, counting money from all sources, or 2.4%
or $2.5 billion more than in the current year. Counting only state funds,
the budget would spend $69.1 billion, or 5.4% or $3.5 billion more than in
the current year.
Close a $4.2 billion revenue shortfall in fiscal 2005-06 and reduce projected
out-year budget gaps to $2.7 billion in 2006-07 and under $2.8 billion in
2007-08.
Generate $1.9 billion in state Medicaid savings, $1.1 billion from cost containments.
Most reductions in the program have failed to win approval in the past in
the state Legislature.
Eliminate the 2003 state income tax increase for New Yorkers making more
than $100,000 in 2005, a year earlier than the Legislature plans.
Cap Medicaid costs for New York City and the 57 counties outside the city
at 2005 levels, with annual growth rates limited to about 3%. Pataki estimated
Medicaid savings to local governments at $578 million for fiscal 2005-06.
Raise $1 billion in new revenues, including new or higher fees for using
state campgrounds and registering motor vehicles and all-terrain vehicles.
Increase school spending by $526 million, to an all-time high of $15.9 billion,
as part of a five-year "Sound Basic Education Aid" program. When fully implemented,
in fiscal 2009-10, the plan would provide an additional $8 billion statewide
in school spending a year, including $4.7 billion for New York City schools.
Commit to a five-year, $36.6 billion program to make capital improvements
in the Metropolitan Transportation System, the state's highway and bridge
system, airports, and transit systems outside of New York City. The plan
calls for $19.2 billion for the MTA improvements and $17.4 billion for the
other transportation facilities.
Allow a $500-a-year tuition increase in the State University of New York
system and a $250-a-year increase in the City University of New York. Pataki
promised to introduce legislation to allow annual tuition increases in both
systems tied to a higher-education expense index.
Continue the suspension of the elimination of the 4% state sales tax on items
of clothing and footwear worth $110 or less. Pataki proposed two sales tax-free
weeks on clothing items with purchase prices of exempt items increased to
$250.
Introduce a sales tax-free purchase period for energy efficient items like
air conditioners and hot water heaters that carry the "Energy Star" designation.
Projected savings to taxpayers of $4.2 million.
Proposed establishing eight more gambling halls featuring slot machine-like
video lottery terminals, including five in New York City. The Legislature
rejected the idea last year.
Creates "Operation SPUR," an upstate economic development plan using tax
credits, tax exemptions, and grants for capital projects to boost industrial
facilities, incubators, and commercial centers.
Create a four-year, $1 billion program to re-evaluate the state's hospital
and nursing home system and recommend the closure and consolidation of underused
facilities and services.
Two-year extension of the state's $4.4 billion Health Care Reform Act for
hospitals, nursing homes, teaching medical hospitals, and other health-industry
purposes. The act is set to expire in June 2005.
© 2005 The New York Sun, One SL, LLC