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Pataki Says New State Budget Is "Soundly Balanced"

By Joyce Kryszak

Buffalo, NY – Governor George Pataki Wednesday called his proposed $99.8 billion budget for 2004-2005 "soundly balanced." But the next few months of budget debate will determine how strongly activists and state legislators agree.

The Governor called his budget an opportunity to "seize the day." He says it will take bold reforms and cost cutting to maximize what he sees as positive economic growth in the state.

"The past few years have been difficult, but the opportunities before us are great," said Pataki. "The moment to act is now. Let's move forward in that spirit, with confidence, with zeal and with one voice."

Some, on both sides of the political aisle, were quick to add their voices to that rally cry. They applauded Pataki's proposals for economic development. They liked his continued tax cut plan, his incentives for new business and his sweeping reform proposals. Pataki is calling for an overhaul in the pension system, and a ten year plan to take over long-term Medicaid costs. Erie County Executive Joel Giambra says that's very good long over due news.

"I'm gratified that the governor, for the first time in the four years that I've been county executive, has put Medicaid reform at the top of his agenda," Giambra said.

But others were not so pleased with the finer details of the Governor's budget agenda. The plan calls for across the board cuts in most programs, including Medicaid. A wide variety of medical and mental health services for the poor and disabled would be cut or eliminated all together.

Pataki would also revamp education aid. He proposes no SUNY tuition increase, but would hold back some Tuition Assistance. He would establish an education reform fund, but would tie new tax cuts to a lower spending cap. And Assembly Speaker Sheldon Silver says what Pataki calls a school aid increase is really a cut.

"In this year to be proposing a $240 million cut in education when the state is in the middle of an education crisis - our children deserve better than this," Silver said.

Lawmakers begin budget hearings next week. Tuesday, most were just beginning to sort through the fine print of the many chapters in the Governor's proposed budget.