Gov. Paterson and the Legislature were on track to raid every piggybank in New York last night, seeking to scare up $1.6 billion to balance Albany’s books for the current year – but with scant regard for the $14 billion in red ink that must be sponged up for the fiscal year that starts April 1.
The governor’s people largely crafted yesterday’s agreement – a scheme in which state agencies raid the cash reserves of other state agencies.
Talk about stop-gap.
The next budget deadline is 55 days hence, and Paterson seems not to notice.
Or, particularly, to care.
The governor’s original 2009-2010 budget plan actually called for an overall, inflation-adjusted spending increase – to be paid for with $4.6 billion in taxes and fees, the largest tax hike in state history.
This left the field clear for legislative leaders and their affiliated interest groups to prepare the way for a massive income-tax hike, on top of the imposts already budgeted by the governor.
Yesterday, Assembly Speaker Sheldon Silver proposed not just a temporary “millionaire’s tax” but “a permanent revision of our tax code” to wring yet more cash out of New Yorkers.
This is part of a coordinated campaign by Silver and his special-interest allies to close the budget gap simply by filling it with tax dollars.
Meanwhile, New York’s health-care cartel launched a disgusting, $1 million ad campaign featuring a blind patient attacking Paterson (who is legally blind) for his exceedingly modest attempt to rein in Medicaid spending.
Paterson’s response? “I have absolutely no problem with their ads.”
Why didn’t he just wave a white flag?
There’s plenty Paterson can do – if he wants to.
For starters, he could take some tips on crisis management from three veterans of New York’s fiscal crises of the 1970s; their wise words appear on the opposite page.
Back then, Gov. Hugh Carey and Mayor Ed Koch – in concert with legislators and labor leaders who put New York’s interests before their own parochial concerns – literally saved the day.
There was pain, but also progress.
Sadly, no permanent lessons were learned; New York is again at the brink.
But there’s still time to cut judiciously and save core government services without raising taxes and killing jobs.
Other states are doing it: The Wall Street Journal noted Monday that several governors are pursuing tax cuts and other incentives to lure investment, tax revenue and jobs to their states.
Minnesota is looking to freeze government wages and deeply cut spending. That will help it cut business taxes in half – and exempt small businesses from capital-gains taxes.
Colorado Gov. Bill Ritter wants to double business tax credits – while also chopping spending.
Will they be criticized? Of course.
That’s the price of real leadership.
And where is David Paterson?
AWOL.
Unacceptable. Simply unacceptable.