Over the past several years families have been looking for ways to curtail their spending. The cost of groceries, gasoline, health care, and just about everything else included in the family budget has increased sharply while income has failed to keep pace. In order to balance the books many households have turned to creative solutions and have simply found ways to make do with less. Now, state government is following suit.
The newly approved state budget reduces year to year spending for the first time in fifteen years. Finally, some real belt-tightening from Albany, an idea I have endorsed for some time. On its face, it is a concept that is easy to embrace, but putting it into practice is nowhere near as simple.
The approximately $132 billion spending plan pares state operating expenses by ten percent and eliminates a $10 billion deficit without raising taxes or resorting to new borrowing. In order to accomplish the savings many state agencies and departments are being forced to cut back and change the way they do business. Over the long haul this will translate to a more streamlined, efficient state government; in the short term, however, there will be some pain and a few bumps in the road. I fully believe that the pain will be quickly extinguished.
By bringing state spending in line with the fiscal realities facing our state and our nation we send a very important message to the business world – New York recognizes the need to take a new economic approach and is taking the steps necessary to foster financial recovery. Business leaders are already taking notice.
Here’s what Heather Briccetti, acting-president & CEO of The Business Council of New York State had to say about the budget: “By reaching a bi-partisan budget agreement that cuts spending, avoids significant new taxes or increased borrowing the state’s leaders are sending a powerful message to the state’s business community. For decades New York has spent too much and taxed too much. The result has been the loss of people and jobs and stagnant economic growth. It will take time to make New York fully competitive again, but this budget agreement shows that New York’s leaders are serious about changing its direction to create jobs and opportunity.”
Along with bringing state spending in line, the budget also includes important economic development tools which will help generate new private sector jobs that we so desperately need. A retooled Power for Jobs program, now called Recharge NY, will provide low cost power to businesses, especially manufacturers, helping lower the state’s notoriously high energy costs. The Excelsior Jobs program includes expanded tax credits to encourage new job creation. The budget also restores funding for important agriculture programs that mean a great deal to our upstate farmers struggling to make ends meet.
The economic measures send a clear, unmistakable message – New York is open for business. By remaking the state’s image we can attract new employers, put people back to work, and build the overall tax base. This state budget is a step toward accomplishing that makeover we so desperately need.
I also want to applaud all involved in the budget-making process. Unlike the last two years, when state government was ruled by one political party, a renewed air of bipartisanship paved the way for an on-time budget. Both the senate and assembly closely followed the Budget Reform Law of 2007, meeting deadlines, convening public conference committees, and working closely with the governor to negotiate a final spending plan.
The budget is a building block, but there is still work to be done in Albany. A property tax cap and substantial mandate relief for our schools and local governments must be enacted in short order. Pension reform is also needed to help bring down property taxes. These are priorities of mine and I am confident my colleagues at the Capitol are focused on these issues as well.
