[NYAPRS Enews] Newsday: Paterson Cuts to School Aid, Medicaid Hospitals & Nursing Homes Likely

[Harvey Rosenthal]

NYAPRS Note: Following today's 11:00 am issuance of Governor's
Paterson's proposal to cut $2 billion from the current year's state
budget, NYAPRS will be providing a brief summary of the proposed cuts.
NYAPRS is also helping to host a Monday Albany news conference and
Tuesday demonstration in support of community mental health recovery
services as legislators come to town to respond to the Governor's
proposals.

 

Paterson Takes Aim At LI Schools To Balance Budget

By James T. Madore and Melissa Mansfield Newsday November 12, 2008 

 

ALBANY - Affluent school districts on
<http://www.newsday.com/topic/travel/long-island-PLTRA000031.topic> Long
Island and elsewhere should have their state aid reduced to close this
year's budget deficit before poor districts are impacted, Gov.
<http://www.newsday.com/topic/politics/david-a.-paterson-PEPLT005080.top
ic> David A. Paterson said yesterday.

"We just can't do everything across the board," he told reporters in
Syracuse. "We have to make needs assessments when we make the cuts."

Later, Paterson raised the prospect of a hike in gasoline taxes. In a
radio interview, he said motorists had reaped little savings from a tax
cap adopted in 2006.

Removing the cap was under consideration, he said, because when taxes
were cut, the price of gas didn't fall. "It was really an opportunity
for the retailers to collect more than they had before. And so that's
[lifting the cap is] something that might be considered," he said.

 

Paterson's comments came on the eve of today's release of $2 billion in
suggested cuts from the $26 billion in state funds left in this year's
budget. He has called for a special session of the legislature on
Tuesday to close the $1.5-billion deficit. He wants lawmakers to approve
a further $500 million in reductions, should a new budget gap develop
before the fiscal year ends on March 31. 

The 2008-09 budget totals $120.8 billion, including federal money.

Paterson declined yesterday to reveal his recommendations. But midyear
cuts in school aid and Medicaid reimbursements to hospitals and nursing
homes are likely because they account for more than half the unspent
state funds: $10.6 billion and $5.4 billion, respectively.

Still, State Senate leaders from both political parties voiced
opposition before last week's general elections to school aid cuts. 

And Majority Leader Dean Skelos (R-Rockville Centre) reaffirmed his
pledge even after his party lost Senate control for the first time in 43
years. He also said he would fight tax hikes.

Paterson has ruled out increasing the personal income tax and borrowing
to close this year's deficit. "Every time we raise [income] taxes, it
accelerates the migration of New Yorkers out of state," he told WSYR-AM
radio in Syracuse.

But, minutes later, the governor criticized a move that barred state
sales tax from being charged on the portion of gasoline prices above $2
a gallon. He said motorists hadn't seen the benefit during this summer's
surge in pump prices, when they were above $4 per gallon.

"The proposal to lift the sales tax cap on gasoline is not in [today's]
package for the special session," said Paterson aide Risa Heller. "It is
something that might be considered in the future."

Fiscal experts predicted Paterson's proposals today would foreshadow his
thinking about next year's budget, to be unveiled Dec. 16. 

Said Elizabeth Lynam of the nonpartisan Citizens Budget Commission,
"They are going to have to look to reduce spending on the big-ticket
items: Medicaid and school aid."

Budget Cutting
Gov. David A. Paterson wants lawmakers to cut $2 billion from the $26
billion in state funds remaining in this year's budget. Here's how the
money is allocated.
School aid: $10.6 billion
Medicaid: $5.4 billion
Department of Correctional Services: $1 billion
Office of Children and Family Services: $978 million
CUNY: $969 million
Judiciary: $842 million
Debt service: $772 million
 
<http://www.newsday.com/topic/education/state-university-of-new-york-ORE
DU0000065.topic> SUNY: $689 million
Aid to local governments: $657 million
Other: $4.1 billion
SOURCE: state Budget Division

http://www.newsday.com/services/newspaper/printedition/wednesday/news/ny
-stbudg125923380nov12,0,656310.story 

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