ALBANY - Lawmakers and the labor and business forces that drive New York state government are criticizing Gov. Eliot Spitzer's gloomy revision of his state budget proposal.
Projecting $384 million less in revenue for the budget due April 1 because of a continued decline in the national economy, Spitzer trimmed his proposed 2008-09 budget so it would increase spending by 4.8 percent over the current budget. Before the amendments, the plan was to increase spending by about 5 percent to a total of $124 billion.
To help fill the gap, Spitzer proposes $36 million in savings at government agencies, a withdrawal of $25 million from the Environmental Protection Fund, and $50 million more revenue from a “covered lives assessment” charged to health insurance companies, among other measures.
“The governor would increase taxes again,” said Republican Assemblyman James Hayes of Erie County at a legislative budget hearing. “It will almost assuredly be put on the backs of consumers and insurers in New York state.”
Senate Republican leader Joseph Bruno says Spitzer's to plan hike assessments on health insurers is actually a tax increase, despite the governor's promise not to raise taxes. Bruno says the state will lose businesses if they are taxed more and much of the cost will likely be passed on to consumers.
“I don't know the economics of that, I don't know the common sense of that,” Bruno said.
Assembly Speaker Sheldon Silver says he understands Spitzer's economic concerns, but says the Legislature still must review and revise the proposed budget.
“It's a good starting point,” Silver said of Spitzer's budget. But he added: “We clearly have concerns.”
He told the New York Bankers' Association Monday that although there is “uncertainty in our economy,” the state must honor its moral obligations to increase school aid, provide health care for every child, and other measures that are priorities for the Democrat-led Assembly.
The New York Health Plan Association said Spitzer's latest targeting of health care cuts too deeply when the governor also wants to make sure more New Yorkers have health insurance.
“The proposed amendments to the 2008-2009 Executive Budget clearly raise taxes on those who currently have health insurance and, frankly, we are perplexed at how Governor Spitzer hopes to expand the number of New Yorkers covered by health insurance when he is making the very cost of insurance more unaffordable,” said Paul Macielak, president and CEO of the association.
He said Spitzer's amendments would result in a $190 million increase in the assessment on health plans if the Legislature doesn't change it.
“The covered lives assessment is pure and simple a tax on every insurance policy sold in New York,” he said.
Environmentalists are also upset with Spitzer's amendment. Spitzer's plan to take $25 million more from the Environmental Protection Fund will result in a total loss of $125 million or about half the fund, said John Sheehan of The Adirondack Council.
Sheehan said Spitzer's budgeting threatens the planned purchase of $200 million worth of Adirondack land that would protect those areas from development.
“The EPF was created by the Legislature to be used for the express intent of environmental protection and the protection of public health,” said the council's Scott Lorey. “This raid on the dedicated fund is contradictory to the Legislature's intent for creating it.”
AP Photos NYMG101-102
To help fill the gap, Spitzer proposes $36 million in savings at government agencies, a withdrawal of $25 million from the Environmental Protection Fund, and $50 million more revenue from a “covered lives assessment” charged to health insurance companies, among other measures.
“The governor would increase taxes again,” said Republican Assemblyman James Hayes of Erie County at a legislative budget hearing. “It will almost assuredly be put on the backs of consumers and insurers in New York state.”
Senate Republican leader Joseph Bruno says Spitzer's to plan hike assessments on health insurers is actually a tax increase, despite the governor's promise not to raise taxes. Bruno says the state will lose businesses if they are taxed more and much of the cost will likely be passed on to consumers.
“I don't know the economics of that, I don't know the common sense of that,” Bruno said.
Assembly Speaker Sheldon Silver says he understands Spitzer's economic concerns, but says the Legislature still must review and revise the proposed budget.
“It's a good starting point,” Silver said of Spitzer's budget. But he added: “We clearly have concerns.”
He told the New York Bankers' Association Monday that although there is “uncertainty in our economy,” the state must honor its moral obligations to increase school aid, provide health care for every child, and other measures that are priorities for the Democrat-led Assembly.
The New York Health Plan Association said Spitzer's latest targeting of health care cuts too deeply when the governor also wants to make sure more New Yorkers have health insurance.
“The proposed amendments to the 2008-2009 Executive Budget clearly raise taxes on those who currently have health insurance and, frankly, we are perplexed at how Governor Spitzer hopes to expand the number of New Yorkers covered by health insurance when he is making the very cost of insurance more unaffordable,” said Paul Macielak, president and CEO of the association.
He said Spitzer's amendments would result in a $190 million increase in the assessment on health plans if the Legislature doesn't change it.
“The covered lives assessment is pure and simple a tax on every insurance policy sold in New York,” he said.
Environmentalists are also upset with Spitzer's amendment. Spitzer's plan to take $25 million more from the Environmental Protection Fund will result in a total loss of $125 million or about half the fund, said John Sheehan of The Adirondack Council.
Sheehan said Spitzer's budgeting threatens the planned purchase of $200 million worth of Adirondack land that would protect those areas from development.
“The EPF was created by the Legislature to be used for the express intent of environmental protection and the protection of public health,” said the council's Scott Lorey. “This raid on the dedicated fund is contradictory to the Legislature's intent for creating it.”
AP Photos NYMG101-102
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Hillbilly wrote on Feb 12, 2008 1:01 PM:
Then he will take a "withdrawal of $25 million from the Environmental Protection Fund." Isn't this the Fund you can elect to send additional monies to on your income tax returns? You know a gift to Wild Life? Maybe I have it wrong. Screw Nature.
I still think they should take an idea from the NPG Plant proposal with Magna. The old employees will be offered a 30% CUT IN PAY or the plant will close. Maybe it's time for State workers to take a cut in Pay, say 15%. With all making more than $75,000 taking a 30% cut and all over $125,000 taking 50% cuts. This will only last until the budget is balanced without raising TAXES, FEE'S or ASSESSMENTS or any other work that can be used in place of the word TAX. Of course the lower paid state workers will get their pay rates back before those at higher pay grades. It's only fair.
I know, I know the CSEA will cry fowl but, if we the TAX payers can't afford you we can't afford you. And besides it will be holding down your TAXES, FEE'S and ASSESSMENTS too. By the way how much does a State Worker pay for Health Insurance monthly. I pay $315.00 per month for mine and they keep cutting the benefits and raising the co-pays.
I just asked an employee of an insurance company what she pay for her health insurance. $35 per month and when she retires it will only be something like 5% of what she makes. If she makes $2000 P/M (very close to what I make) she would only pay $100 P/M. I wonder what the Governor, and Assemblymen and Women pay for their health insurance. Will they please tell us? Maybe a recall of the Governor not a bad idea either? "