Lean times in Albany
Governor David Paterson issued a stern warning on Tuesday and Wednesday, urging lawmakers to tighten their belts and brace for spending cuts. "The era of buy now, pay later and later is over,” he declared.
Figuring out just who pays is, naturally, the tricky part. And in that sense, we can expect the current fiscal tensions to evoke the standard tug-of-war in Albany.
The landscape is already polarizing as the business-oriented Citizens Budget Commission calls for controlling government spending on social services while the labor-friendly Fiscal Policy Institute urges ramping up taxes for higher income brackets.
As usual, folks are looking out for their own turf. Civil Service Employees Association President Danny Donohue bridled at Paterson’s overtures toward shrinking the public workforce:
“We will not stand by for knee jerk political solutions that diminish our quality of life and create more misery.”
Could the super-rich have some fat to trim? Some hope the Governor's initiative will spark interest in a so-called “millionaire’s tax.” But since lawmakers have worked ardently to chip away at the tax burden on individuals, such a proposal is likely to meet fierce opposition in the upcoming special legislative session, especially in a tense election year.
Karen Scharff, director of Citizen Action of New York, prompted the Governor to use the fiscal crunch as a springboard for expanding social services and progressive tax reform.
“Budget cuts and political gimmicks like the tax cap will just drive us deeper into crisis."
Assembly Speaker Sheldon Silver hoped for help from above:
"we expect Washington to acknowledge New York’s economic hardship and to provide this state with the assistance we deserve and need."
Washington may be in no state to pitch in, however. The recently unveiled $482 billion federal budget deficit could spell more gloom as many state governments across the country scrounge for fiscal relief in an economic downturn. The White House has stressed that the gap, in fact, is partially a byproduct of the stimulus payments doled out nationwide earlier this year.
Newsday’s Dan Janison sees Paterson’s grim speech as an effort to set the tone in Albany, but one that may soon fade as lawmakers hoping to score votes turn their attention to pleasing constituents.
“All 212 state legislative seats are open this Election Day, and lawmakers will be averse to slicing programs, raising taxes, or taking any risks until after November. Paterson, however, would not be facing voters for two years, when the fiscal seas may indeed have grown rougher.“So Paterson, prodding Senate Majority Leader Dean Skelos and Assembly Speaker Sheldon Silver to help impose austerity, said: ‘We cannot wait and hope this problem will resolve itself.’ He called for an ‘emergency economic session’ next month.
“What action will be taken remains unclear, once this summertime fireside chat is forgotten.”
Look for the Editorial Board's take on the fiscal crisis and Albany's responsibility on tomorrow's Opinion page.