ALBANY -- The state's 700 public school districts would lose $840 million in state aid in their current budgets and state university students would see a $300 tuition increase in January under a plan proposed today by Gov. David Paterson to help erase New York's deficit.
Aid to local governments also would be cut, which local officials warned in advance that the lose could lead to cuts in services or higher property taxes.
The cuts to public schools, amounting to a 4 percent reduction from what was promised when the budget was enacted in April, will be Paterson's most difficult hurdle with the Legislature, which is coming back to Albany Tuesday to consider his ideas.
Hospitals and nursing homes would also get hit with $572 million in reimbursement cuts for providing services to Medicaid patients, and the state university system would be shaved $105 million, potentially cutting into classroom programs.
Paterson also wants state workers to take a salary freeze for a year -- a move that will pose contract problems with public employee unions. He also wants to force new state worker retirees to pay more for their health care costs and force current and retired state workers to contribute for part of their Medicare premiums. The work force cuts would save the state $137 million this year.
Sources said education is being targeted for more cuts than health care because schools were left off the chopping block when the budget was already trimmed by $425 million in August.
Tuition at state university campuses would rise from $4,350 to $4,950, with $300 of the $600 increase coming for the spring semester. Tuition has not increased since 2003.
For local governments, $134 million is being reduced in state revenue sharing. A planned increase of $61 million for next year for communities outside New York City would be scrapped.
Groups that provide a range of social services, from housing to drug treatment, are in line for $20 million in cuts. He wants to cut cost-of-living adjustments for human service providers and shave various low-income housing programs.
The governor, while not planning to raise taxes, is calling for higher fees on residents, such as the SUNY tuition hike. He also wants to impose a 5-cent bottle deposit on water and other non-carbonated beverages.
A number of economic development programs would be cut under the Paterson plan. And, while he vowed no gimmicks, his plan also envisions taking some money from state authorities -- which are not part of the state's general fund … and dropping the proceeds into the overall state budget.
The state is facing a $1.5 billion budget in its current year's budget. The overall budget totals $120 billion, but the cuts are being made from the state-funded portion of the budget, which totals $56 billion. Paterson, though, has said he wants lawmakers to cut $2 billion because he believes the state's fiscal picture will worsen before the fiscal year ends March 31.
Next year, the problem is worse. He is projecting a $12.5 billion budget deficit, which will be lower -- because of the recurring nature of spending cuts -- if the Legislature enacts his proposed cuts in the current budget.
Reply With Quote
Originally Posted by sukie
