Guy Cosentino: Budget winners, losers -Part II

By Guy Cosentino

Monday, April 27, 2009 11:40 PM EDT

Wednesday's column dealt with the winners in the recently adopted 2009-2010 state budget. Here are some of the losers:
• Reform - The budget process can only be seen as a reformer's nightmare. Done out of sight of the public, with little or no notice of details, it would be remarkable to find a member of the state Legislature who could contend that they knew what they voted for in detail if they voted “yes” on the budget - many are still trying to figure out what is in the budget. What has been most disappointing has been that for years Senate Democrats, when in the minority, especially led by then-Senate Minority Leader David Paterson, all talked about “opening up the system” and making the process more transparent. They apparently forgot that when they got control, because this process was as transparent as a brick wall.

• Economic developers - While it is easy to point, as it should be, to higher tax rates as a deterrent to economic development, the devastating blow to many efforts may be the changes to Economic Development Zones. EDZs have rightly been criticized for the way they have often given out benefits, without meeting the job projections they pledged to deliver. Many who wanted to eliminate or reform EDZs also wanted to make sure there was a similar, but better operated economic development tool in their toolbox. Instead they lost much of the EDZ program and nothing has been created to replace the benefits that will help make New York more competitive in economic development, when compared to neighboring states.

• Groceries and convenience stores - While they may have hoped for a balanced mix from this year's budget - increased and expanded bottle deposits in exchange for the ability to sell wine - they got the former not the latter. Worse for convenience stores, there looks to be no relief on the one issue they have been harping on for years - the collection of taxes from non-Native Americans purchasing tobacco products from Native American establishments.

• Union members - With 8,900 state employees originally slated to lose their jobs because of their union leadership's unwillingness to negotiate contract modifications with Paterson, some 8,400 will be laid off July 1. While their leadership gets a rallying cry to pound on Paterson, they will still get pink slips.

• Taxpayers - It should be no surprise that the biggest losers in this budget are taxpayers. No matter how budget supporters want to spin it, taxes are increased $8.5 billion to help pay for an increase of $12 billion in spending. Making matters worse, no real structural reforms to get New York on a better financial footing when the stimulus package money runs out was done.

Cosentino is a former mayor of Auburn and can be contacted at cozguytho@aol.com

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