Message from Liz . . .
The Governor has introduced his budget and my colleagues and I are now evaluating his proposals. In my role as Vice-Chair of the Senate Finance Committee, I have been attending each of the thirteen budget hearings during which agency heads explain the budget proposal, and advocates and nonprofits discuss the impact of the proposal on the communities they represent and serve.One thing is clear - there will be severe impacts by this year's budget on education, healthcare, social services and local governments.Governor Paterson's budget must address a $7.4 billion shortfall in revenues for 2010-11.
In addressing this deficit, the Governor has proposed an array of painful cuts, including an across-the-board cut of $500 million from agency budgets. School aid would be reduced by $1.1 billion, State healthcare funding would be cut by $1 billion.There would be a $79 million cut to the Environmental Protection Fund, with a moratorium on land acquisition though the fund. There would be a $75 million cut to all TAP awards for college students and a $56 million cut to community college aid. Cuts to programs for the homeless and supportive housing funded through Temporary Aid for Needy Families (TANF) would be cut by $69 million. There is no doubt that if these cuts are implemented they will cause significant harm to fundamental programs throughout the State. And there is also no doubt that either these cuts or others identified by the Legislature must be made in order to address the serious financial crisis we are in.
As I evaluate proposed cuts, I will be focusing on ensuring that they do not fall disproportionately on the most vulnerable New Yorkers or on any particular region of the State. I am concerned that, in certain proposals, the Governor's budget will have a disproportionate impact on New York City.
First, the Governor proposes complete elimination of Aid to Municipalities (AIM) funding for New York City with much smaller cuts for the rest of the State. The $301.7 million cut the city is facing accounts for 94% of the $320.2 million in AIM reductions State-wide. Almost every other county is facing merely an average 2-5% cut in comparison to the City's 100%.
Second, the Governor's budget restructures the STAR program by limiting the NYC Personal Income Tax STAR Benefit. This is a backdoor tax increase which will cost New York City residents an estimated $200 million in new taxes. STAR has always disproportionately benefited land-owners outside of New York City and that fact will only be exacerbated by the limiting of the NYC Personal Income Tax STAR Benefit.
Third, proposed social service cuts are likely to disproportionately impact New York City, as well as the most vulnerable New Yorkers throughout the State. The budget proposes elimination of a number of Temporary Assistance for Needy Families (TANF) funded programs (such as Supportive Housing for Families, Summer Youth Employment, Flexible Fund for Family Services, Child Care Subsidies) and reduction in various homeless, refugee and employment programs (such as the Homeless Intervention Program, Citizenship Program, NYS Refugee Resettlement Assistance Program and HIV Welfare-to-Work Program). These cuts would have a devastating impact.
Identifying the problems with the Governor's proposal is the easy part - the hard part will be coming up with alternative proposals which will achieve the same or greater savings. In the weeks between now and the April 1st budget deadline, this is my primary job, and I welcome your feedback as to how best to address the fiscal crisis we face.