Budget Busters

By Malcolm A. Smith

There was a time when Republicans in New York prided themselves as the arbiters of fiscal accountability and responsibility. They chided Democrats as "tax-and-spend liberals" and said only Republican restraint could protect homeowners and small businesses from the spiraling taxes that come with excessive spending.

No more.

Even the most casual of Albany observers must be amazed at the complete transformation that has taken place over the last decade, culminating last week in the attempt by the Senate Republican majority to add more than $3 billion in new spending to the Executive Budget.
The Republican plan is the height of fiscal irresponsibility, increasing spending by more than 9 percent and condemning New York State to growing deficits - climbing to $14 billion by 2010-11, according to the Division of Budget.

The Republicans, led by Majority Leader Joe Bruno, have not only turned their back on fiscal accountability. They have also reneged on several agreements between the governor and Legislature that could jeopardize our efforts to reform the budget process and deliver an on-time budget.

Earlier this year, the governor and Legislative leaders agreed to budget reforms requiring consensus on revenue forecasts. Just two weeks ago, we all agreed the state could reasonably expect $575 million in additional revenues. Since then, however, Senate Republicans have turned their back on the agreement - and on our budget-reform pact, by irresponsibly adding $300 million to their revenue projections.

The Senate Republicans also reneged on their agreement to create reserve and debt-reduction funds, as proposed by the governor. Rainy-day funds, which help cushion the blow of an economic downturn or other unforeseen calamity, are a cornerstone of responsible budgeting, as are debt-reduction reserves. But the Senate Republican spending spree would require bleeding these reserve funds dry.

Gov. Spitzer has made some extremely difficult choices in his first budget and has shown great political courage in doing so. I disagree with some of his priorities, and will continue to discuss and negotiate our differences.

But it is important to understand that the governor's budget is intended to begin the process of correcting a financial morass that has been left unaddressed for years. He is proposing more than just another short-term plan to maintain the status quo for one more year.
He is proposing a dramatic change to the way Albany conducts business. He is asking for greater accountability and responsibility from elected officials, from our schools and medical facilities and from the public we all serve.

He is seeking to redirect funding to programs that are proven to work, and wants to deliver better services in a more efficient way at lower cost.

He has proposed increased funding to community-health programs that are effective in providing patient care, and (to his great credit) has created a plan that would provide universal health-care coverage to New York state's 400,000 uninsured children.

On school aid, the governor is trying to finally change the outdated and inequitable school-aid distribution formula, which has for years shortchanged so many high-needs districts in our cities and rural areas.

The Senate's Democratic Conference long has advocated these proposals.

Shaking up the status quo is never an easy thing for an elected official to propose. In doing so, the governor has shown that he holds himself to the same high standards of accountability and responsibility that he asks from others.

The Senate Republicans, on the other hand, seem desperate to cling to the status quo, to maintain a process that has been dysfunctional and deleterious to the state for years.

As the budget process continues, I hope to bring the governor around to my way of thinking on certain funding priorities. But I will support his efforts to change our standards, to make the state budget less wasteful and more efficient in delivering services.

The result will be a state government that is less costly for our taxpayers, especially middle-class and working families and small businesses.

Malcolm A. Smith (D-Queens) is the Democratic leader in New York's state Senate.

Smith Criticizes Senate GOP for Fiscal Irresponsibility

Senate Democratic Leader Malcolm A. Smith today blasted the Senate's Majority for "abandoning their commitment to accountable and responsible governance."

Smith said the Senate Majority plans to eliminate strategic reserves created by the Executive Budget and increase anticipated deficits in future budgets, "is the height of fiscal irresponsibility."

He said the Majority plans to add billions of dollars in spending to the Governor's budget "would condemn the State to escalating deficits and spiraling property taxes."

Smith said New York "is at a critical juncture. Our debt has skyrocketed in the past decade because a dysfunctional legislature refused to act responsibly and reign in spending."

As a result, New York's homeowners now face the highest property taxes in the nation and our

business climate, especially Upstate, has stagnated.

Smith praised Governor Spitzer for "exhibiting the leadership and courage necessary to make the tough decisions and propose necessary reductions in State spending."

Smith said the Governor has brought "a new reality to Albany, in which accountability and responsibility are of utmost importance."

Senate Majority, however, "continue to cling to the status quo, continue to do business as usual and continue to ignore the critical issues facing New York State."

Smith said the Senate Minority are committed to providing New Yorkers with "health care that is both affordable and excellent, with schools that are properly functioning and properly funded and with property taxes that are appropriate and affordable."

However, Smith said the State could achieve those goals "without pandering and without abandoning our commitment to responsible and accountable government."