New York Passes Deficit Reduction

After nearly a month of negotiating, New York State implemented a deficit reduction plan last week, closing an estimated $2.6 billion of a $3.2 billion budget shortfall.

“These were difficult cuts,” said State Senator Vincent Leibell who voted for the deficit reduction plan, although he voted against the original budget. “We had no choice, honestly; the comptroller’s estimate is closer to $4 billion in deficit.”

Leibell was proud that local school districts were spared. “Carmel school district would have lost over a million. Haldane would have lost $160,000, Garrison over $300,000,” Leibell said. “It would have been extremely difficult if they had to make cuts this late in the fiscal year. “

“I knew the numbers were wrong, and I said we’d be back, and we came back,” Leibell said. “We’ll be heading into session again to make this work.”

“This process should have occurred when the budget process was happening in the spring,” said Assemblyman Greg Ball, “and the deficit-reduction is done with stimulus and one-time cuts. It doesn’t address New York State’s addiction to spending.”

“New York State should have declared a financial emergency. It would have allowed us under duress to renegotiate all of the state’s contracts.,” Ball said, “I would like to see the state implement a real hiring freeze. They fill vacancies, every day…. We need the complete elimination of member items in the assembly, and also pork, which would save another $500 million. I’d like to see the governor work with others to reduce spending in all the agencies. ”

Leibell hesitated to name any particular agencies that deserved the necessary budget cuts. “It’s hard to make that determination on the legislative side, we have limited access to the agencies, and an executive needs some flexibility,” he said.

The state senator had some praise for the implementation of a new Tier 5 pension system that would require public employees to contribute more to their pensions and would cut down on overtime abuse which leads to exorbitant pensions. “The results are not automatic, but we will start to see them in the next few years, these are major reforms,” Leibell said, “and more is required.”

Leibell characterized Governor David Paterson’s approach as one that prefers to make cuts across the board. “Some agencies, like emergency services, don’t lend themselves to across-the-board cuts,” Leibell said.

“Albany thinks it’s okay to have three men sit in a room and do the budget without input from other elected representatives,” Ball said, “and it leads to outrages like this.”