By Assemblyman Will Barclay (R-Pulaski)
Gov. Paterson recently got on local airways and addressed the people of New York State, saying we are facing difficult financial times and the situation will get worse before it gets better. This isn’t news, but the address hopefully will bring the state’s fiscal crisis more fully to the people’s attention. Paterson called the legislature back to session to meet on Aug. 19 and is asking three things: cut the state budget by $600 million; cap property taxes; address high cost of home heating. The Governor also will administratively cut state budget spending by $630 million.
I’m pleased we’re being called back. I was dissatisfied with this year’s budget in particular and have been dissatisfied with the process ever since I took office in 2002. There is a good deal of last minute bills being snuck in by a select few and pushed through after being attached to larger budget bills, giving little or no time for debate or amendment.
Hopefully, this special session will enable the legislature to look at where spending can be cut and balance our state budget in the middle of a fiscal year. Controlling spending is half of the equation. Finding real solutions to property taxes, decreasing taxes on small businesses and reducing energy costs will help keep our state’s economy healthy as well.
I voted against much of this year’s budget because I didn’t feel it was responsible. Not only was spending high, it increased the debt load by $3.2 billion. The total state debt last year was already at $50 billion but this budget ensured New York would add to that total. The governor’s office projected the state debt would increase over the next five years to $61.2 billion and without cuts like this, we’ll surpass even that. Additionally, the more the state borrows, the more interest it has to pay and debt service costs will increase over the next five years to $7.1 billion.
We need more fiscal responsibility. To that end, I sponsor legislation that would require the state to first pay down its highest-cost debt. This will provide interest savings to the state. However, this debt-reform law will not fix the entire problem. Our first priority should be to slow the growth of spending.
Better planning is essential. This year’s budget authorized the Urban Development Corporation to issue an additional $1.3 billion in new debt. This alone is more than a 2,000 percent increase from last year. The increase is primarily due to the fact that no agreement on an economic development spending plan was reached last year, and therefore, no Senate and Assembly capital spending was approved last year.
If we were budgeting for a business, and debt was already high, the accountant would caution the business against more borrowing. That actually happens in Albany. The “hired accountant” or the State Comptroller has issued warnings, asking leaders to keep their spending in line. However, those warnings have been ignored by the legislature. With the Governor now heeding these warnings and taking action before an election cycle, it’ll be interesting to see where politics lead and whether mid-year cuts are made. I believe it’s essential to the future of our state and will work toward making those cuts.
If you have any questions or comments on this or any other state issue, or if you would like to be added to my mailing list or receive my newsletter, please contact my office. My office can be reached by mail at 200 North Second Street, Fulton, New York 13069, by e-mail at [email protected] or by calling (315) 598-5185.
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