[NYAPRS Enews] Paterson Announces Internal Workgroup To Lower Spending

[Matt Canuteson]

GOVERNOR PATERSON CREATES WORKING GROUP TO FIND BUDGET CUTS AND EXPLORE
ROOT CAUSES OF HIGH SPENDING 

Media-Newswire

April 24th 2008

 

(Media-Newswire.com) - Governor David A. Paterson today announced that
he has tasked the Division of the Budget, working with other key
Administration staff, with developing recurring and responsible budget
proposals to significantly reduce State spending growth for the 2009-10
budget and beyond. This marks the first in a series of many steps the
Governor will take to develop a fiscally-responsible budget that is both
proportional to economic times and reflective of a commitment to
strategic investments in priorities such as education, health care
access, economic development. 

 

An internal working group - including Budget Director Laura Anglin,
Deputy Director of State Operations Kristen Proud, Senior Advisor
William Cunningham and other senior staff members - will report back to
the Governor before the end of the legislative session with a series of
recommendations for making tough choices in next year's budget and
jumpstarting public discourse. Also, Michael Weber, who was Finance
Secretary to the Senate Democratic Conference from 2005 to 2006, joined
the Executive Chamber today and will play a key role in the analysis. 

 "The economic forecast is grim, and we need to take the steps necessary
to reduce our spending. I've directed this group to do exactly that:
take the time early on to see where we can reduce our expenditures for
next year. This process will not be easy, but we must be realistic about
where the economy is going and how New York can plan appropriately. This
is only the first step in what will be multi-stage process to get our
fiscal house in order."

 

Over the last five years, State Operating Funds spending has increased
by an average rate of more than 7 percent annually. In the best of
times, growth of this magnitude would be generous; in difficult times,
it is unsustainable. The recently enacted budget slowed this growth to
4.5 percent, but given the current economic climate, further restraint
is critical.

 

The Governor has made it clear that spending growth must be reduced
significantly. As such, this analysis will focus on State Operating
Funds, which is the most accurate measure of State spending funded by
state taxpayers. The All Funds figure, which is typically cited as the
measure of State spending, is in some sense a misleading representation
of State operating spending because it includes federal spending as well
as long-term capital expenditures. On the other hand, General Fund
spending is too narrow a focus because its relevance as a benchmark for
spending has diminished over the years since the state now pays for a
growing number of activities outside the General Fund.

 

While all state spending will be reviewed, particular areas of focus
will include:

*       Activities that do not serve an important statewide purpose; 

*       Programs that are obsolete or are no longer serving their
intended purpose; 

*       Distinct programs that are funded by dedicated fees and fines
that do not provide critical services; 

*       Discretionary local grants that may be more appropriately
financed at the local level or from private sources, or not at all; 

*       State agency expenditures on equipment, services, staffing and
contracting levels, and other discretionary items; 

*       Public authorities spending; 

*       Capital projects that are not needed to protect the health and
safety of the public

 

http://media-newswire.com/release_1064539.html

 

 

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