By Mark Scott
Albany, NY – Governor David Paterson is seeking a five percent cut in school aid as well as $1 billion in new taxes and fees in his 2010-11 state budget proposal.
The $134 billion dollar budget Governor Paterson released Tuesday closes a $7.4 billion deficit. In addition to a $1.1 billion cut in school aid, Paterson wants a $1 billion cut in health care spending, much of which goes to hospitals and nursing homes. The Legislature will strongly oppose the measures, in part because health cuts will harm community hospital care and school aid cuts are likely to prompt school boards to raise local property taxes and cut programs.
New taxes include a $1 increase in the tax on a pack of cigarettes, restoring New York as the state with the highest tax on cigarettes. Paterson said the revenue will be dedicated to health care. It would raise the state tax to $3.75 per pack.
He also wants a new excise tax on soft drinks and soft drink beverage syrups, a cost that could be passed on to consumers. He said that revenue would fund health programs that combat obesity, diabetes, cancer and other illnesses.
Paterson would also allow the sale of wine in grocery stores, which advocates say will increase sales and tax revenue.