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2009-10 budget proposal highlights

17 December 2008

Here's a look at some of the key elements of the budget proposal by Gov. David Paterson today:

* Spending would remain flat, and spending for state-operating funds would increase by .5 percent. Spending for all funds -- including federal aid -- would total $121.1 billion, an increase of $1.3 billion or 1.1 percent, the lowest increase since the 1996-97 executive budget.

* There would be no broad-based income tax increase, but there will more than 88 new taxes and fees.

* The 2008-09 budget has a projected deficit of $1.7 billion, a deficit of $13.7 billion in 2009-10; $17.1 billion in 2010-11, and $18.6 billion in 2011-2012, totaling $51.1 billion.

* School aid would be reduced by $698 million, or 3.3 percent, from 2008-09, leaving funding for school aid at a total of $20.7 billion, a 42 percent or $6.2 billion increase compared to the 2003-04 budget.

* Medicaid spending growth would be limited to $16 billion, an increase of 3.8 percent from 2008-09 but less than what health care groups wanted.

* Funding for the STAR rebate program, in which checks are sent home annually to homeowners, would be eliminated, while funding for the STAR exemption program will total $3.3 billion.

* SUNY tuition would be increased $620, or 14 percent, and CUNY tuition would increase up to $600, also a 14 percent hike. The budget would establish a New York Higher Education Loan Program to provide a minimum of $350 million in loans to about 45,000 state residents attending higher education institutions.

* Welfare grant would be increased 10 percent, from $291 to $320 in January 2010; by 10 percent to $352 in January 2011; and 10 percent to $387 in January 2012. The budget would also reserve funding for programs such as foster care, adoption, child and adult protective services, and domestic violence services.

* The state workforce is expected to decrease by 3,108 in 2009-10, including an estimated 521 layoffs resulting from consolidations, facility closures and program eliminations. The budget proposes deferring five days of salary payments until the employee leaves the state workforce or the fiscal crisis is declared over; eliminating the scheduled 3 percent salary increase; and requiring employees to contribute more money to health care coverage.

* A Tier V pension program would be established for new state employees that, along with adopting the requirements for Tier IV, would exclude overtime compensation when calculating pension benefits.

* Empire Zone programs would be revamped to better ensure that tax breaks for companies are producing new jobs.

* Closing would occur at four prison camps and three annexes, three Office of Children and Family Services evening centers, three of the office's youth programs.

* State debt is projected to grow by $2.6 billion, or 5 percent, to $54.2 billion due to investments in economic development, transportation, and higher education.

Source: pressconnects.com