By Joyce Kryszak
Albany, NY – Governor Eliot Spitzer Tuesday rolled out his 2008-2009 budget proposal that closes a $4.4 billion deficit while maintaining what he called the top priorities with no new taxes. WBFO's Joyce Kryszak reports on mixed reaction to the $124 billion dollar plan.
Spitzer would save money by cutting across all departments, scaling back on promised education and property tax aid, and by raising new revenues.
The budget includes $400 million worth of new initiatives. The Governor would invest in higher education, the upstate economy and provide health care for 400,000 uninsured children. Spitzer said Medicaid can be a tool to fix the state's health care system.
He called it a step toward universal health care. But his plan to pay for it with lower reimbursements to hospitals and nursing homes did not sit well with Assembly Speaker Sheldon Silver, a fellow Democrat. Republican Senator Dale Volker agreed it is a bad idea. Volker also had a big problem with the governor's call for over a Billion dollars worth of new taxes and fees.
On the other side of the ledger, Spitzer is proposing about $93 million less in education aid than outlined last year. And an increase to Star rebates for the middle class also is on hold. Republican Assemblyman Jim Hayes said the Governor went the wrong direction.
Hayes and Volker both predict there will have to be substantive changes to Spitzer's plan to get a budget passed by April 1. Spitzer said he expects a dynamic discussion - within the limits of a roughly five percent spending hike.
The budget, however, received high marks overall from fellow Democrats, including Buffalo Mayor Byron Brown and Niagara Falls elected officials. They applauded the Governor's commitment to ongoing development in the upstate cities.
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