Paterson's Budget Proposal
January 19th, 2010
Gov. David Paterson laid out his 2010-2011 budget proposal this morning. “We cannot keep spending money we do not have,” Paterson said.
Under the plan spending would only increase by .6 percent.
Likely to cause the most outcry is $1 billion in cuts to state school aid grants. Health care funding would be slashed by $1 billion and state agency spending would be reduced by $1 billion.
Aid and Incentives for Municipalities Funding for New York City would be entirely eliminated. The city will lose $301.7 million. Other municipalities will see their AIM funding reduced by either two or five percent.
The budget contains almost $1 billion worth of new taxes and fees, which the administration says are designed to avoid another $1 billion cuts to health care.
Paterson was notably more cordial to the legislature than he was during his state of the state address.† Paterson’s proposal is likely to be torn to shreds during negotiations with the two legislative leaders, who have spent the early weeks of the year battling and snubbing Paterson.
New taxes and fees include:
- A $1 per pack increase on the cigarette tax.
- A “sugar” tax on soft drinks and syrups that equals about a penny an ounce.
- Health care taxes would be increased by $240 million by hiking surcharges on hospital stays, home care and nursing homes.
- A tax on natural gas extraction.
New revenue generators include:
- Allowing wine sales in grocery stores.
- Legalizing mixed martial arts.
- Deploying speed cameras around the state.
- Allowing same-sex couples who were married in other states to file joint tax returns in New York.
- Pushing back restrictions on Quick Draw lottery.
- Doing away with limits on the hours of operation of Video Lottery Terminals.
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