By Mark Scott
Albany, NY – Wednesday's State of the State address left many questions unanswered as elected leaders in New York embark on a difficult budget year. Governor Pataki is vowing to allow previously-approved tax cuts to take effect. But other than saying he'll reduce state spending, Pataki gave no indication on how he plans to reduce a multi-billion dollar deficit.
The governor said the only area of the state budget that will see an increase next year is spending on public security. Though he never specifically said so in his address, Legislature Democrats assume that means there will be no increase, and possibly a cut, in aid to public schools and local governments. Assembly Speaker Sheldon Silver finds Pataki's silence on that troubling.
"There was no mention of any kind of municipal aid in his speech," Silver said. "There's no talk about our towns and villages suffering to the point where they're talking about raising their taxes."
But Republican State Assemblyman Jim Hayes of Williamsville suggests the state will not necessarily shift the tax burden to local property taxpayers. He says the Assembly minority has offered a package that would offer local governments mandate relief, especially when it comes to Medicaid.
"We know how onerous Medicaid is to taxpayers, specifically county taxpayers," Hayes said. "New York is one of only two states in the nation that forces localities to pay for its Medicaid programs.
"So, I think one thing the Legislature is going to do now in the wake of the governor's message is to work on those issues of mandate relief."
On Thursday, U.S. Senator Hillary Rodham Clinton said she'll introduce a bill that would see the federal government assume more of the cost for the Medicaid program. She said New York would save $2.6 billion under her proposal.