Laura
11-12-2008, 10:05 PM
from NY! news:
http://www.ny1.com/content/top_stories/88795/governor-proposes-cuts-in-growth-in-education--medicaid/Default.aspx
Governor Proposes Cuts In Growth In Education, Medicaid
By: NY1 News
Claiming that he is not cutting education and medical spending, Governor David Paterson proposed $2 billion in spending cuts to close this year’s state budget deficit gap.
“The more we do not address the cost of running this state, the less options we will have later on,” said Paterson Wednesday at his East Manhattan press conference, which detailed plans intended to close the state’s estimated mid-year deficit of $1.5 billion and add cushioning for next year’s deficit.
The governor said he wants to reduce the growth of the budgets for the education budget from nine percent to five percent, which he claimed will save $585 million this year.
A state official subsequently explained that poor and high-need school districts will receive smaller cuts than high-performing districts and that school systems have been recently encouraged to find efficiencies in spending.
Similarly, Paterson proposed to halve the growth of Medicaid, from two percent to one percent, to save $572 million this year. A state official then explained that the medical program's spending will increase 10 percent during the current budget year due to increased enrollment.
The governor said the cuts are "painful" but that he saw no alternative. He pledged to reconsider if lawmakers could show him how to raise the needed money.
"This is the result of our increased spending over year and years and now the downturn on Wall Street, which had bailed us out for a number of years, and now the well has run dry," said Paterson. "Our families and our businesses around the state have learned to adjust to these budget deficits, and now our government will have to adjust as well."
The governor said additional savings will come from delaying salary payment and freezing raises for state workers. He said he has not yet considered laying off state employees.
Paterson also said students in the State University of New York and the City University of New York will pay $600 more in yearly tuition.
The governor’s office promised that 10 percent of the tuition increase would return as university funding, and next year the portion will increase to 20 percent. Prior tuition increases were accompanied with equal cuts in funding.
New York City also faces cuts of $41 million in aid.
Mayor Michael Bloomberg said that what the governor is proposing could force him to take drastic steps that could directly impact the classroom.
"We can't cut much more from outside the classroom," said the mayor. "This time, our budget cut some money from the Department of Education, causing us to reduce employment by 350 jobs outside the classroom. But at some point you need to have administration."
No across-the-board personal tax increases are being planned by the governor.
Paterson said that the $2 billion in proposed spending cuts for this year will lower next year’s deficit from $12.5 billion to at little as $8.8 billion. He also wants $3.2 billion in cuts for next year's budget. Over four years, the estimated state deficit will be reduced to $35.9 billion from $47 billion.
State lawmakers are set to return to Albany on November 18 for a special session, although it is not yet clear if they will act on any of the governor's recommendations.
http://www.ny1.com/content/top_stories/88795/governor-proposes-cuts-in-growth-in-education--medicaid/Default.aspx
Governor Proposes Cuts In Growth In Education, Medicaid
By: NY1 News
Claiming that he is not cutting education and medical spending, Governor David Paterson proposed $2 billion in spending cuts to close this year’s state budget deficit gap.
“The more we do not address the cost of running this state, the less options we will have later on,” said Paterson Wednesday at his East Manhattan press conference, which detailed plans intended to close the state’s estimated mid-year deficit of $1.5 billion and add cushioning for next year’s deficit.
The governor said he wants to reduce the growth of the budgets for the education budget from nine percent to five percent, which he claimed will save $585 million this year.
A state official subsequently explained that poor and high-need school districts will receive smaller cuts than high-performing districts and that school systems have been recently encouraged to find efficiencies in spending.
Similarly, Paterson proposed to halve the growth of Medicaid, from two percent to one percent, to save $572 million this year. A state official then explained that the medical program's spending will increase 10 percent during the current budget year due to increased enrollment.
The governor said the cuts are "painful" but that he saw no alternative. He pledged to reconsider if lawmakers could show him how to raise the needed money.
"This is the result of our increased spending over year and years and now the downturn on Wall Street, which had bailed us out for a number of years, and now the well has run dry," said Paterson. "Our families and our businesses around the state have learned to adjust to these budget deficits, and now our government will have to adjust as well."
The governor said additional savings will come from delaying salary payment and freezing raises for state workers. He said he has not yet considered laying off state employees.
Paterson also said students in the State University of New York and the City University of New York will pay $600 more in yearly tuition.
The governor’s office promised that 10 percent of the tuition increase would return as university funding, and next year the portion will increase to 20 percent. Prior tuition increases were accompanied with equal cuts in funding.
New York City also faces cuts of $41 million in aid.
Mayor Michael Bloomberg said that what the governor is proposing could force him to take drastic steps that could directly impact the classroom.
"We can't cut much more from outside the classroom," said the mayor. "This time, our budget cut some money from the Department of Education, causing us to reduce employment by 350 jobs outside the classroom. But at some point you need to have administration."
No across-the-board personal tax increases are being planned by the governor.
Paterson said that the $2 billion in proposed spending cuts for this year will lower next year’s deficit from $12.5 billion to at little as $8.8 billion. He also wants $3.2 billion in cuts for next year's budget. Over four years, the estimated state deficit will be reduced to $35.9 billion from $47 billion.
State lawmakers are set to return to Albany on November 18 for a special session, although it is not yet clear if they will act on any of the governor's recommendations.