Public Employee Press

State budget closes $4B gap

In his proposed budget for the year beginning April 1, Gov. Eliot Spitzer would close a $4.4 billion gap by raising an array of fees and taxes, slowing property tax relief and holding down projected increases in health-care and education spending.

The budget, which Spitzer unveiled Jan. 22, would raise spending by 5 percent and increase the state workforce by 1 percent, to nearly 200,000 employees.

While the proposal increases education aid by $1.45 billion, New York City schools would get $100 million less in operating assistance than anticipated.

Last year, Spitzer pledged to increase school spending by over $7 billion in the next four years, with much of that going to New York City. The dramatic increase in school spending came after a group that said the state school aid formula short-changed the city won a 13-year court battle. Spitzer indicated that the economic slowdown is forcing him to cut the increase in school funds.

Besides the loss in educational assistance, the city will also receive $20 million less than anticipated for juvenile detention facilities and $30 million less for public assistance.

The governor has been touting a plan to use lottery income to establish a $4 billion endowment for the State University of New York and the City University of New York. Yet his executive budget would cut SUNY by $34.2 million and CUNY by $16.7 million.

The budget calls for $980 million in health-care savings, such as changing the method for state drug purchases andadditional taxes on health maintenance organizations.

Cutbacks that helped the governor to close the budget include halving the projected $328 million in revenue sharing for the city, reducing property tax relief by $354 million, closing corporate tax loopholes by $435 million and increasing fees by $305 million.

DC 37 Executive Director Lillian Roberts said, “We are monitoring the state budget closely to make sure that any shortfalls do not negatively impact the men and women of this union who provide essential services.”