- By Dan Veaner
- News
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"The budget plan would reduce our state deficit by almost $60 billion in 5 years, leaving us a ‘mere' $11 billion in the hole," said Jean McPheeters, president of the Tompkins County Chamber of Commerce. "I applaud the Governor for facing the real economic facts and for deciding to begin the streamlining of state government. However, his budget proposal would eliminate about 3,100 state jobs-just 1.6% of the total workforce while keeping the growth of General Fund spending flat. I think there needs to be more basic cuts and an actual reduction in the size of state government."
McPheeters acknowledged that the Governor has already ordered state agencies to cut their spending by 10 percent.
Patterson's budget proposal is a stunning document made necessary by stunning times, McPheeters said. New York State is facing a $15.4 billion budget deficit between the current ($1.7B) and the next fiscal year ($13.7B in FY2009-10). At least 180,000 New Yorkers are expected to lose their jobs by the end of next year and the state unemployment rate is likely to reach 7.1% in 2009.
Local institutions will face cuts as well. Cornell University could see an approximate $6 million reduction in 2009-10 and a $4 million cut in the current fiscal year. The education investment plan that was begun in 2007-08 will be stretched out and implemented over eight years instead of four. Moreover, businesses will face many fees and taxes on health insurance and health care services. Empire Zones will face substantial changes and many local employers could see significant cuts in benefits that were guaranteed.
"This budget plan acknowledges the realities of the economic crisis and asks New Yorkers to share the pain through increased fees, assessments, and taxes, along with an elimination of the Middle Class STAR rebates."
"I very much appreciate the Governor's efforts to produce a budget that recognizes the need for change in our state's spending and I hope that individuals, businesses and organizations will work with him to improve this document," McPheeters said. "We need to focus on controlling government spending while we wrestle with the details of this budget. The Tompkins Chamber and our government affairs committee will work diligently to understand this budget plan and to recommend any necessary changes to our state legislators."
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