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Gov. Pataki's $99.8 billion budget plan for 2004-05 includes $11.3 million for a new state licensing fee for handgun owners. 
Pataki Unveils $99.8 Billion Budget Plan
Pataki unveils $99.8 billion budget plan
By MARC HUMBERT, Associated Press
Last updated: 8:30 a.m., Tuesday, January 20, 2004
ALBANY -- Republican Gov. George Pataki, the state still suffering serious fiscal problems, proposed a $99.8 billion state budget today that called for increased spending in some areas, but also cuts to many state programs.
Having failed last year to hold down spending and taxes in the face of a rebellious state Legislature that overrode his vetoes, Pataki again pleaded for fiscal restraint.
"The budget I present you today strikes a balance," Pataki said. "It closes a $5.1 billion deficit, by making the difficult decision to reduce spending for many worthy programs."
Overall, the total budget proposal of $99.8 billion represents a $1.5 billion increase over the current year's budget, or 1.5 percent. Excluding federal funding, state funds spending would total $63.49 billion under the Pataki plan, a 2.2 percent increase worth $1.4 billion.
General fund spending, where most direct tax dollars go, would be reduced by $175 million to $41.88 billion, a drop of 0.4 percent.
The budget proposal is for the state fiscal year that begins April 1, although that deadline hasn't been met since 1984.
While Pataki said his budget plan rejected "broad-based tax increases," it does call for $972 million worth of "revenue actions" and "adjustments." That would include such things as expanding the state sales tax on clothing by $400 million.
Pataki, a staunch gun-control advocate, also called for a new state licensing fee for handgun owners that he said would raise $11.3 million annually.
The governor also called for $1.5 billion worth of ``transitional financing to move toward structural fiscal balance over the next few years.'' Within that is included about $300 million in borrowing, according to Pataki aides. The state already leads the nation in per capita borrowing.
Pataki did pledge targeted new tax cuts to help business expand, particularly high-technology firms and he called for cuts in Medicaid spending and a public pension overhaul that he said would save localities, and the state, hundreds of millions of dollars.
The governor said there should be no tuition increase at the state's public colleges and universities and he called for a slight increase in state aid to public schools, raising it to $14.6 billion, up from $14.4 billion.
Pataki also called for allowing competitive bidding to create eight new sites across the state where electronic video lottery terminals -- a form of slot machine, according to critics -- would be allowed. Two years ago, Pataki and the state Legislature approved putting the VLTs in horse racing tracks across New York.
While the governor said his budget plan would not require state employee layoffs, he said a hiring freeze would continue. And, he said most state programs would see spending reductions of 5 percent under his proposal.
To deal with the politically thorny problem of closing some of the state's underutilized and aging mental hospitals, Pataki proposed a bipartisan Commission for the Closure of State Psychiatric Centers, an approach taken by federal officials for military base closings. Pataki did propose closing the Middletown Psychiatric Center next year, noting its patient population had fallen from more than 3,600 to just 115 people.
The governor said the $5.1 billion revenue shortfall would have been worse except for the rebounding stock market. That has meant big bonuses for Wall Street traders and resulting higher state income tax revenues for Pataki and the Legislature.
The budget proposal is up from the $63.5 billion budget adopted by Pataki and the Legislature when he first took office in 1995. But Pataki noted that the average annual growth of 4.9 percent is below the national average of 5.8 percent.
Even before he presented his complete budget plan, Pataki was thrown a $500 million curve ball by state Comptroller Alan Hevesi, a Democrat, who said Monday that key portions of a public pension plan offered by the governor on Friday were unconstitutional. Pataki had said his plan would save the state $500 million and local governments $800 million in the new fiscal year. The comptroller is sole trustee of the state's $115 billion public pension plan.
Last year, legislative leaders in the Republican-led state Senate and the Democratic-controlled Assembly rebelled against Pataki's proposals to put a lid on spending increases in the face of a projected major revenue shortfall. Overriding his vetoes, the Legislature jacked up income and sales taxes and authorized massive new borrowing to pay for the extra spending the lawmakers wanted.
Pataki is hoping for a little more cooperation this year from the Legislature. Both state Senate Majority Leader Joseph Bruno, a Republican, and Assembly Speaker Sheldon Silver, a Democrat, have said they won't support new taxes again.
Pataki and Bruno have also both vowed to cut Medicaid spending to help local governments, which pay 25 percent of the cost of the health care services for the poor. County executives across the state, facing ever-rising local property taxes that threaten their political careers, have begun a coordinated effort to pressure the state to take over all or part of the local Medicaid costs.
The Legislature and Pataki are also under court order to overhaul the state's education aid system for public schools to provide better schooling in poor urban districts. Whether they will be done in time for the current state fiscal year's budget remains very uncertain. Pataki called Tuesday for setting up a reserve fund to help pay for whatever system is adopted.
While some recent past delays in adopting a state budget have dragged into August, arguing against such a lengthy delay this year is the fact that all 212 seats of the Legislature go to voters in November. Lawmakers like to get home in time to spend the summer campaigning. Pataki has no such pressure. His current term runs through 2006.
Copyright 2004 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
All Times Union materials copyright 1996-2004, Capital Newspapers Division of The Hearst Corporation, Albany, N.Y.
Pataki Unveils $99.8 Billion Budget Plan
Pataki unveils $99.8 billion budget plan
By MARC HUMBERT, Associated Press
Last updated: 8:30 a.m., Tuesday, January 20, 2004
ALBANY -- Republican Gov. George Pataki, the state still suffering serious fiscal problems, proposed a $99.8 billion state budget today that called for increased spending in some areas, but also cuts to many state programs.
Having failed last year to hold down spending and taxes in the face of a rebellious state Legislature that overrode his vetoes, Pataki again pleaded for fiscal restraint.
"The budget I present you today strikes a balance," Pataki said. "It closes a $5.1 billion deficit, by making the difficult decision to reduce spending for many worthy programs."
Overall, the total budget proposal of $99.8 billion represents a $1.5 billion increase over the current year's budget, or 1.5 percent. Excluding federal funding, state funds spending would total $63.49 billion under the Pataki plan, a 2.2 percent increase worth $1.4 billion.
General fund spending, where most direct tax dollars go, would be reduced by $175 million to $41.88 billion, a drop of 0.4 percent.
The budget proposal is for the state fiscal year that begins April 1, although that deadline hasn't been met since 1984.
While Pataki said his budget plan rejected "broad-based tax increases," it does call for $972 million worth of "revenue actions" and "adjustments." That would include such things as expanding the state sales tax on clothing by $400 million.
Pataki, a staunch gun-control advocate, also called for a new state licensing fee for handgun owners that he said would raise $11.3 million annually.
The governor also called for $1.5 billion worth of ``transitional financing to move toward structural fiscal balance over the next few years.'' Within that is included about $300 million in borrowing, according to Pataki aides. The state already leads the nation in per capita borrowing.
Pataki did pledge targeted new tax cuts to help business expand, particularly high-technology firms and he called for cuts in Medicaid spending and a public pension overhaul that he said would save localities, and the state, hundreds of millions of dollars.
The governor said there should be no tuition increase at the state's public colleges and universities and he called for a slight increase in state aid to public schools, raising it to $14.6 billion, up from $14.4 billion.
Pataki also called for allowing competitive bidding to create eight new sites across the state where electronic video lottery terminals -- a form of slot machine, according to critics -- would be allowed. Two years ago, Pataki and the state Legislature approved putting the VLTs in horse racing tracks across New York.
While the governor said his budget plan would not require state employee layoffs, he said a hiring freeze would continue. And, he said most state programs would see spending reductions of 5 percent under his proposal.
To deal with the politically thorny problem of closing some of the state's underutilized and aging mental hospitals, Pataki proposed a bipartisan Commission for the Closure of State Psychiatric Centers, an approach taken by federal officials for military base closings. Pataki did propose closing the Middletown Psychiatric Center next year, noting its patient population had fallen from more than 3,600 to just 115 people.
The governor said the $5.1 billion revenue shortfall would have been worse except for the rebounding stock market. That has meant big bonuses for Wall Street traders and resulting higher state income tax revenues for Pataki and the Legislature.
The budget proposal is up from the $63.5 billion budget adopted by Pataki and the Legislature when he first took office in 1995. But Pataki noted that the average annual growth of 4.9 percent is below the national average of 5.8 percent.
Even before he presented his complete budget plan, Pataki was thrown a $500 million curve ball by state Comptroller Alan Hevesi, a Democrat, who said Monday that key portions of a public pension plan offered by the governor on Friday were unconstitutional. Pataki had said his plan would save the state $500 million and local governments $800 million in the new fiscal year. The comptroller is sole trustee of the state's $115 billion public pension plan.
Last year, legislative leaders in the Republican-led state Senate and the Democratic-controlled Assembly rebelled against Pataki's proposals to put a lid on spending increases in the face of a projected major revenue shortfall. Overriding his vetoes, the Legislature jacked up income and sales taxes and authorized massive new borrowing to pay for the extra spending the lawmakers wanted.
Pataki is hoping for a little more cooperation this year from the Legislature. Both state Senate Majority Leader Joseph Bruno, a Republican, and Assembly Speaker Sheldon Silver, a Democrat, have said they won't support new taxes again.
Pataki and Bruno have also both vowed to cut Medicaid spending to help local governments, which pay 25 percent of the cost of the health care services for the poor. County executives across the state, facing ever-rising local property taxes that threaten their political careers, have begun a coordinated effort to pressure the state to take over all or part of the local Medicaid costs.
The Legislature and Pataki are also under court order to overhaul the state's education aid system for public schools to provide better schooling in poor urban districts. Whether they will be done in time for the current state fiscal year's budget remains very uncertain. Pataki called Tuesday for setting up a reserve fund to help pay for whatever system is adopted.
While some recent past delays in adopting a state budget have dragged into August, arguing against such a lengthy delay this year is the fact that all 212 seats of the Legislature go to voters in November. Lawmakers like to get home in time to spend the summer campaigning. Pataki has no such pressure. His current term runs through 2006.
Copyright 2004 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
All Times Union materials copyright 1996-2004, Capital Newspapers Division of The Hearst Corporation, Albany, N.Y.
