Job Creation, improved government efficiencies and statewide balance are trademarks of budget agreement

(Albany, NY)- Yesterday, State Senate Majority Leader Malcolm A. Smith joined Governor Paterson and Assembly Speaker Silver in announcing a three-way agreement to close the largest budget gap in state history. Faced with an astounding two-year, $17.7 billion budget gap for fiscal years 2009-10, the Senate, Governor and Assembly settled on a budget agreement highlighted by improvements in government efficiencies, job creation and a shared commitment to responsible budgeting. The three-way agreement on the budget bills puts the Legislature and Executive in position to enact an on-time budget for just the third time in over two decades.

 “With economic conditions worsening by the day and no region of the State immune to the pain of economic challenges not seen since the Great Depression, we made the tough choices these difficult times demand,”said Senate Majority Leader Malcolm A. Smith.

 As state revenues plummeted by an additional $3.2 billion since February 2009 and new unemployment claims reaching nearly 40,000 per week in March 2009, the Senate Majority displayed a strong commitment to fiscal responsibility in their efforts to reduce the State’s multi-year deficit by an estimated 80 percent. Coupled with the Deficit Reduction Legislation, passed by the Senate and Assembly just over a month ago, the budget agreement reflects the largest spending reduction in state history at $6.5 billion.    

 General Fund spending, according to a preliminary assessment is expected to increase no more than 1 percent and total approximately $54 billion. Concurrently, All Funds spending is expected to total approximately $131.8 billion, an increase of $10.5 billion or 8.7 percent with the overwhelming majority of that increase ($7.2 billion) a result of federal stimulus money which by federal mandate must be spent during the current fiscal year.

Jobs stimulate the economy, and that is exactly what the Senate fought for as a main component of our budgetary priorities, successfully creating over 110,000 new jobs in this year’s state budget. The long-term economic growth of our state is dependent upon our ability to create new and good-paying jobs. With 58,000 jobs in energy efficiency, retrofits and renewable energy “green jobs”, 50,000 jobs in transportation and associated fields and over 2,000 jobs for low-income New Yorkers, the Senate provided our state with the tools necessary to achieve long-term economic growth.

To raise the necessary revenue to meet the extraordinary challenges of these difficult fiscal times, the budget agreement calls for a $4 billion personal income tax surcharge on the wealthiest of New Yorkers which will expire after three years due to the Senate’s advocacy.

Also included in the budget were approximately $800 million in restoration of healthcare cuts proposed in the Executive’s budget and over half a billion dollars in transitional funding to ease the change to a more patient-driven health system. To make health care delivery more efficient, the budget agreement includes new reforms to increase investments in primary and preventative care. The Senate also fought for and won initiatives for $127 million to support community based health clinics and a $16 million pool to support Upstate and suburban community hospitals.

Protecting our state’s most valuable asset, our children, the Senate was able to hold the line on all cuts to education, restoring school funding to fiscal year 2008-09 levels and maintaining foundation aid and high tax aid. The budget agreement also includes $30 million in bullet aid to schools with special financial challenges, a restoration of funding for teacher centers and libraries and reimbursement of mandated expenses at private schools. Additionally, the Senate was able to secure a much needed restoration of over $10 million to preschool special education programs and $1.4 million in money for low-income special education students.

For the first time in 30 years the budget agreement establishes an increase in the welfare grant   and $40 million in job programs for low-income New Yorkers, including Senate initiatives on green jobs, health access jobs and subsidized employment.

“Throughout this budget process, we utilized a core set of principles to lead our way–protect healthcare from the harshest cuts while reforming the system through investments in primary care, maintain strong education funding, and create new jobs to jump start the economy. This budget is far from ideal, but neither was the dire state of the economy that confronts us. What we now have, however, is a road map for long-term economic growth and sustainable recovery to bring New York back into fiscal solvency,”said Senate Majority Leader Malcolm A. Smith.

“Despite the very real threat of a doomsday budget, we have successfully crafted an agreement that focuses on returning New York State to a position of fiscal stability, restoring public confidence and getting our economy back on track,”said Senator Carl Kruger (D-Brooklyn), Chair of the Finance Committee. “Even more, we have accomplished this goal while assuring that government continues to fulfill its mission to meet the needs of all hardworking New Yorkers, including our many underserved and vulnerable residents, who believe fervently in the future of our great state.”

Senator David J. Valesky (D-Oneida), Vice President Pro Tempore of the Senate said, “We have had to make difficult decisions and responsible choices as we face a staggering $16 billion deficit.   Responsible action has required cuts in spending and shared sacrifice to get New York State back on track, while at the same time protecting vital programs in health care, education, economic development and agriculture."

Back to Home Page