ALBANY – Governor Eliot Spitzer revealed his $120.6 billion budget proposal Wednesday. This is an increase of 7.8 percent increase in state spending from last year; most of the increases can be attributed to Spitzer’s campaign promises, such as property tax cuts and helping education.
Spitzer said everyone agrees that the state needs to get everything under control and told the audience, “that is all we can afford.” New York State’s current debt is about $50 billion.
The budget offers $6 billion in real estate tax relief over the next three years. Senator Thomas Libous (R-Binghamton) said, “The real estate tax cut is like the one being offered in the senate and is a sign of positive change for upstate New York. This proposal offers significant property tax relief.”
Senator James L. Seward (R-Milford) agreed, saying, “The state senate has already passed a massive property tax relief plan, and I will fight for additional, genuine, property tax relief for the hardworking overburdened taxpayers I represent. I am disappointed that he proposes no tax cuts for small businesses.”
The governor’s plan has called for a $7 billion increase in education funding in the next four years. New York currently spends $15 billion a year on education. Assemblyman Gary Finch (R-Springport) said, “I was pleased to hear Governor Spitzer’s executive budget address accountability in the educational system in our state. Particularly, he identified abysmal graduation rates in the 40 percent range to the best performances only in the 80 percent range, all of which are unacceptable. With the proposed increases in funding to education, we all know that accountability is a priority.”
Assemblyman Clifford W. Crouch (R-Guilford) also said he agreed with the real estate cut and higher education spending, but like the other legislators expressed concern over the lack of relief and attention given to small businesses.
“I am only cautiously optimistic about the governor’s budget, because it calls for an increase in state spending and lacks tax credits for small businesses. Small businesses remain the engine behind New York’s economy and we need to make sure we do everything necessary to keep them running and in our great state,” said Crouch.
Some expressed other concerns over the proposal.
“The 6 percent hike in state spending and the 8 percent jump in our state debt he proposes are serious concerns – taxpayers can not support more state debt and the surest way to reduce the need for higher taxes is to restrain spending, especially in Medicaid. We have to make spenders accountable for the wise use of tax dollars, and eliminate waste and fraud,” said Seward.
“Medicare is spiraling out of control. Year after year the cost continues to rise. The governor has decided to address the issues, but I don’t want to see our hospitals and nursing homes forced to cut back,” said Libous.
“The governor gave an interesting budget outline and we all should continue to seek out reform. I am looking forward to working with the governor,” said Libous.