State's staggering new $131.8B tax-and-spend plan has critics howling

[CPBO]

State's staggering new $131.8B tax-and-spend plan has critics howling

BY Kenneth Lovett and Glenn Blain

DAILY NEWS ALBANY BUREAU

 

Monday, March 30th 2009, 12:13 AM

 

Despite Paterson's repeated warnings about the state's fiscal crisis, total spending actually increases by $10.5 billion, or 8.7%, according to state leaders. The bulk of that, they say, is $7.2 billion in federal stimulus money that is required to be spent in the coming fiscal year.

 

The remainder includes $2 billion in spending cuts rejected by lawmakers as well as $1.3 billion in capital and debt service spending. Even without factoring in the stimulus money, state taxpayer-supported funding should grow by at least $800 million, Paterson's office said.

 

"These numbers are absolutely staggering, and the height of irresponsibility on the part of the Democrat leadership in this state," said Senate Minority Leader Dean Skelos (R-L.I.). "The public should be outraged."

 

The new package, which lawmakers will begin voting on Tuesday, is said to contain $5.2 billion in new taxes and fees, though critics say it's likely closer to $7 billion or $8 billion. The biggest increase is a three-year hike in the personal income tax on families making at least $300,000 that is expected to raise $4 billion.

 

Everyday New Yorkers, businesses and the health care industry will all be hit with an array of new taxes and fees.

 

Among those are vehicle registration fees, a cigar tax, a beer and wine tax, a utility assessment, an auto insurance surcharge, driver's license fees, a rental car tax and a registration fee for tobacco sellers. Bottled water drinkers will pay a nickel more because the drink has been added to the 5-cent bottle deposit law.

 

The secretly negotiated deal does away with a $1.5 billion property tax rebate program and offers no new relief measures, despite a push by suburban lawmakers.

 

What it does contain, though, is $170million in pork-barrel spending for lawmakers to spread around their districts. "This reckless budget ignores economic common sense, crushes New Yorkers with $7 billion in new taxes and slams the brakes on our hopes for recovery," said Kenneth Adams, president of the state Business Council.

 

'Solid foundation' to meet 'challenges'

 

After spending most of yesterday not commenting even on the size of the new spending package, Paterson, Assembly Speaker Sheldon Silver (D-Manhattan) and Senate Majority Leader Malcolm Smith (D-Queens) finally released the details Sunday evening.

 

To close a record two-year deficit of $17.7 billion, they say, the budget contains a combination of $5.2 billion in spending cuts, $5.2billion in new taxes, $1.1 billion in nonrecurring revenue and the use of $6.2billion in federal stimulus money.

 

They also say it increases state taxpayer-supported spending by just 1% for the fiscal year beginning Wednesday and reduces New York's long-term deficits 80%.

 

"We have produced a budget that provides a solid foundation to move forward and address challenges ahead," Paterson said. "We have accomplished this with a budget that holds government accountable to the people of New York, and protects those who cannot protect themselves."

 

The package uses federal stimulus money to avoid $1.1 billion in education cuts Paterson had proposed, but does not provide the increase to New York City ordered by the courts.

 

It also contains $2.3 billion in health care cuts and savings, spares $328million in municipal aid to the city, provides $350 million for the state's film tax credit and increases the basic welfare grant by 10%.

 

E.J. McMahon, director of the Manhattan Institute's Empire Center for New York State Policy, said the budget deal "is digging the spending hole deeper."

 

"When he says they cut spending by $6.5billion, he means they didn't increase spending by $6.5 billion," McMahon said.

 

klovett@nydailynews.com

[CPBO]

Get ready to pay people!!!!

 

Among those are vehicle registration fees, a cigar tax, a beer and wine tax, a utility assessment, an auto insurance surcharge, driver's license fees, a rental car tax and a registration fee for tobacco sellers. Bottled water drinkers will pay a nickel more because the drink has been added to the 5-cent bottle deposit law.

 

and who knows what else is hidden in this budget?? Where's the MTA"s cut??

[metsfan]

As long as fares don't go up, and service doesn't get cut, they can tax whatever they want. Also political finger pointing is pretty stupid, especially since they have come up with no viable alternative.

 

- A

[Shortline Bus]

As long as fares don't go up, and service doesn't get cut, they can tax whatever they want. Also political finger pointing is pretty stupid, especially since they have come up with no viable alternative.

 

- A

 

Hey Metsfan a question? do you eat out? do you go tothe movies? You go to Mets/Phillies games? Or bottled water? There are taxes added to cost of your purchase.

 

Maybe you rich Metsfan lol(not being rude making a point:o) I am not rich and taxes are very important as a Single mid-30's age wise man only now working 'part time'.

 

Where i live in NY's Hudson Valley having a car is a must. Local buses in Ducthess County dont run on Sundays/Holidays.

So these possible new taxes from the NYS DMV and other sources can hurt me alot.

 

Although i dont smoke ever i thnk increasing the sin taxes such as playing the lottery(why the 'basic mega lotto game' is still a $1.00?)or buying ciagrettes besides rising taxes on the super rich is much fairer in my view.

 

Just wanted to clarify. Get back to Metsfan or anyone else. Thanks

[metsfan]

Oh i'm poor as dirt, but if it allows me to go places without paying more to get there, i'll still go to movies. My limit was 11.50. Now that movies are over 12 in nyc for the most part, i changed to newport center, or the theater in town, 8 and 7 dollars respectively.

 

Being on welfare forces you to learn the value of a dollar. When i first got food stamps, it was about 15 bucks extra after the basics, now i'm 25 dollars short every month from food costs, and i've been cutting back to even more basic and econo-brands. I'm willing to take in a movie at an older theater, only drink bottled water (our pipes are shot) and not a lot of fancy health beverages etc. I'm willing to pay more to do stuff, because its getting there that is the actual burden. 15.75 plus PATH plus subway = 25+ bucks some times, other times i just chill in NJ and its 17 bucks. Not a bad deal when you realize i go to a whole other part of the country & don't drive.

 

- A