Governor Andrew M. Cuomo announced Thursday the passage of the 2011-2012 budget that eliminates a $10 billion deficit that had been looming.
The budget includes historic reforms that redesign state government, according to Cuomo.
He said it creates efficiencies through consolidation, caps spending increases for education and Medicaid, and transforms the future budgeting process.
The approximately $132.5 billion budget reduces spending overall by more than 2 percent from the previous year.
It eliminates prison space, establishes Regional Economic Development Councils, brings performance funding to education, redesigns Medicaid, and caps next year’s education and Medicaid spending.
This budget reaches its fiscal goals with no new taxes and no borrowing, Cumo said.
Based on preliminary estimates, all funds spending will total approximately $132.5 billion, a decrease of $3.6 billion from the previous year.
State operating spending will total $88 billion, an increase of $1.2 billion or 1.4 percent. The budget closes the current gap with $9.3 billion in spending reductions or nearly 90 percent of the plan.
And the budget was passed on time.
Though the budget reduces Aid and Incentives to Municipalities (AIM) by two percent, the reduction is only two percent from current year levels, as compared to the 10 percent reductions to the state’s operations.
AIM monies are paid to the state’s cities, towns and villages to help fund local costs of government.
State senator James Seward said he approves of the budget.
“[It] takes major steps to improve our economic climate, and meets the needs of our families and individuals who are ready for an Empire State rebirth,” he said in a statement Thursday.
Closing a $10 billion deficit without raising taxes or borrowing is a major accomplishment, Seward added.
“Every effort was made to fairly distribute aid to needy school districts and local governments, and cuts to health care programs and other needed services were minimized where possible,” he said.
But New York State must continue adding to this progress, according to Seward.
“The work is far from over. A property tax cap and real mandate relief for our local governments and schools must be enacted this year to further mend our state’s economy,” he said.
And the legislative climate is right for making further reforms, according to Seward.
“Albany is refocused,” he said.
Assemblywoman Teresa Sayward agrees.
“This year’s budget pro-cess…featured the compromise and transparency that has been sorely lacking in past years, while providing tax credits and incentives that will help revitalize the economy and bring the private sector back to life,” she said.
“We must move forward promptly to eliminate unfunded mandates and job killing regulations in order to ease the burden facing taxpayers in the North Country,” she added.
