Governor Cuomo Pitches 2011-12 Executive Budget In Syracuse
Governor Andrew M. Cuomo today presented his proposed 2011-2012 Executive Budget to hundreds of New Yorkers at Syracuse University, completing a statewide budget address tour that included stops in Albany, Amherst, Purchase, Hempstead, Patchogue, Binghamton, Staten Island and Rochester.
Lieutenant Governor Robert Duffy also held similar budget events in Syracuse, Utica, Plattsburgh and Long Island.
The Governor’s proposal transforms the state budget process to conform to fiscal realities and eliminates a $10 billion deficit without raising taxes or borrowing.
“I campaigned on the notion of delivering a budget that works for the people of New York,” Governor Cuomo said. “It’s time to deliver on that promise and pass a budget that reins in spending, cuts waste and creates efficiencies. I’m proud to conclude this tour in the center of New York state. Syracuse residents deserve a government and a state budget that is as responsible as they are, and the time for action to rebuild and restore our state is now.”
Our state spending has grown at over 5.7 percent per year over the last decade, outstripping tax receipts (3.8 percent), personal income (3.7 percent), or inflation (2.4 percent). Not only do we spend too much, but we get too little in return. Our state is number one in spending on education and number 34 in results. We are number one in spending on healthcare and number 21 in results.
The goal is to return fiscal responsibility to the state so that we may strengthen the economy and create jobs.
A key step in beginning to redesign and realign New York’s government is taking a look at the process used to create the budget.
First, we are redesigning how the budget is created. We are rejecting a system of automatic and unrealistic budget increases that, for years, has caused spending to skyrocket to unsustainable levels.
Second, the process is not just a budget exercise, but a management exercise. That means that we cannot just keep throwing money at the problem. More funds do not mean better healthcare, better schools, or better programs. The changes must start with a look at the programs: do they work for the patient, the student, or the New Yorker.
Third, we must work together to fix our dismal financial situation. That means bringing stakeholders to the table and making everyone part of the solution. From Medicaid to education to government reform to mandate relief, government cannot do this alone. That is why the Governor appointed key working teams in Medicaid redesign and local mandate reform. He also created the SAGE commission on government efficiency to revamp the state government structure.
Fourth, in order to lead by example, we have made the largest percentage cuts in state operations, reducing general fund spending by 10 percent. Though there is much pain to go around, this decision spares local governments the worst of the budget cuts.
Governor Cuomo’s Executive Budget proposal eliminates the projected 2011-12 gap with $8.9 billion in recurring spending actions, or nearly 90 percent of the total plan. The remainder of the gap is eliminated through $340 million of revenue enhancements, such as tax modernization to improve collections and lottery proposals; one new fee; and $805 million in non-recurring actions. This budget proposes gap-closing actions in almost every area of state spending and includes year-to-year reductions in the two largest drivers of State expenditures, Medicaid and School Aid.
State Operating Funds spending increases by 1 percent while all governmental funds spending declines by 2.6 percent. As the Governor has made clear, closing the gap means cutting growth in projected spending. Without actions, spending was projected to grow by 12 percent, due largely to provisions in state law mandating higher spending. This has become an unsustainable process. This budget is designed to reduce or eliminate the impact of many of these provisions and recalibrate spending to sustainable levels to help repair New York’s fiscal condition.
With these actions, the Executive Budget proposes:
- All Funds spending of $132.5 billion in the fiscal year that begins April 1, 2011, a decrease of 2.6 percent or $3.6 billion from 2010-11.
- State Operating Funds spending of $88 billion, an increase of $910 million, or 1 percent. State Operating Funds exclude federal funds and long-term capital spending.
- State Operating Funds are adjusted to reflect the loss of significant one-time federal funding received in 2010-11 to cover Medicaid costs normally paid from State funds and other actions, as well as other extraordinary expenses, at an increase of 1 percent.
The actions proposed in the Executive Budget reduce the projected four-year deficit by 86 percent, from $63.3 billion to $9 billion.
Following the Executive Budget, the projected budget gaps drop to $2.2 billion for 2012-13, $2.5 billion for 2013-14, and $4.4 billion for 2014-15.
Senator David J. Valesky said, “I applaud Governor Cuomo’s leadership in ushering forward a budget that addresses our state’s fiscal concerns while bringing much-needed efficiencies to government. This is a budget that has many innovative and responsible measures, and I look forward to helping make it a reality.”
Assemblyman William A. Barclay said, “I am pleased that Governor Cuomo has come to central New York to discuss his budget proposal. I look forward to continuing to work with the Governor and my colleagues in the legislature in effort to enact an on-time budget that takes into account the economic realities that are facing our country, state and local area.”
Assemblyman William Magee said, “Governor Cuomo’s budget proposal recognizes many of the challenges our state faces and provides a roadmap for recovery. I look forward to working with his administration and stakeholders to reach a consensus on a budget that brings accountability and efficiency to government.”
Assemblyman William B. Magnarelli said, “The budget proposed by Governor Cuomo last month makes difficult choices that for too long have been left ignored. New Yorkers understand that our state needs drastic change in order to succeed, and I stand ready to work with Governor Cuomo and his administration to help New York thrive.”
Assemblymember Samuel D. Roberts said, “I am pleased to see Governor Cuomo actively engaging the public in the budget discussion and I look forward to continuing to work with him to improve our economy with efforts of bringing jobs back to New York.”
Onondaga County Executive Joanie Mahoney said, “Governor Cuomo has shown a willingness to take the steps necessary to stop New York State’s downward spiral. I have seen first-hand that he understands our collective circumstances and is willing to tackle this sobering reality. I commend Governor Cuomo for his early efforts to begin to right the ship of state, and I urge the state legislature to work with the Governor to implement a cost-cutting budget.”
Syracuse Mayor Stephanie A. Miner said, “I commend the Governor for putting forth a budget that requires shared sacrifice. In order to ensure a brighter future for Syracusans and for all New Yorkers, we must modernize and streamline government, eliminate wasteful and duplicative spending and reform many of the processes and policies that have helped create a $10 billion deficit for New York State. Gov. Cuomo’s budget proposal includes the bold and necessary steps to facilitate these changes and is an example of the many difficult choices ahead for all levels of government in the years ahead.”
Syracuse University Chancellor Nancy Cantor said, “We are delighted to host Governor Cuomo. As an anchor institution that catalyzes cross-sector collaboration, Syracuse University resonates strongly with the Governor’s message of shared fiscal responsibility.”
CenterStateCEO President Robert Simpson said, “Governor Cuomo’s budget proposal is exactly what we need to bring business back to New York state. It controls spending while opening doors to real economic development in Central New York and beyond. I’m proud that Governor Cuomo has come to our region to share his message of fiscal responsibility and reopening our state to enterprise and business.”
Topics: 2011, 2011-12 Executive Budget, accountability, Albany, budget deficit, economic development, economic growth, economic recovery, Economy, education, employment, environment, financial controls, fiscal reform, Governance, government, Governor Andrew M. Cuomo, health care, jobs, Juvenile Justice Reform, legislature, Medicaid, moniter, monitor, New York, news, open government, politics, reform, Rochester, Syracuse, taxes, taxpayers, transparency, transportation, U.S., United States
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