NASSAU COUNTY CIVIC ASSOCIATION, INC.
"The government is us, we are the government, you and I." Teddy Roosevelt
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NASSAU COUNTY CIVIC ASSOCIATION, INC. "The government is us, we are the government, you and I." Teddy Roosevelt |
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March 5, 2007
Albany Speak
Reform or politics as usual
Governor Eliot Spitzer promised when elected to bring reform to New York State and start on day one. The one issue that has reverberated throughout the state is the level of excessive taxation. This is the defining symptom of a dysfunctional state government which requires the medicine of reform. While he has talked the talk, it seems to be politics as usual.
The Governor’s proposed $120.6 billion dollar budget increases state spending more than 6.3% over last year which is almost three times the projected inflation rate. His plan calls for more than $600 million in higher business taxes. How will higher business taxes help our local economy and the economically devastated regions upstate? His plan also calls for a $1.4 billion dollar increase in education spending without requiring spending caps by local school districts.
In terms of Medicaid reform, the Governor's plan is to simply shift money from one account to the other and slow the growth of Medicaid. He admitted in his NY Post Op/Ed piece that he will not reduce Medicaid spending and will look to "cover" more people. Our prior Governor created Health Plus and other programs at taxpayer's expense to cover millions of New Yorkers. The question is what is defined as "covering" more people? Are people with existing coverage obtaining health care through the state with state subsidies?
The problem is the level of spending. NY State spends the highest amount per capita on Medicaid than any other state in the union. If government cannot control spending, the taxpayer ultimately gets stuck with the bill. While some of his proposals regarding Medicaid fraud are promising, his reform proposal is nothing more than smoke and mirrors. He needs to reduce the level of benefits and spend only what the state can afford.
As to property tax relief, the governor’s proposal does nothing for the majority of Long Islanders and those who live in the downstate area. His “Three Year Property Tax Relief Plan” calls for a new STAR program that provides property tax relief based on income. These benefits decline when a homeowner’s income downstate exceeds $80,000 ($60,000 for upstate homeowners). As the overwhelming majority of Long Island households have two incomes, the income level is insufficient.
As disclosed in his budget plan, the average household in Suffolk County currently receives $954.00 for the basic STAR rebate. During the first year, that amount is slated to grow to $1717 dollars or an average increase of $763. Based on the rate of growth of local taxes including school taxes, this amount will do little to actually reduce property taxes. It again comes down to shifting taxpayer money. After all, the money to fund the STAR rebate comes from you, the taxpayer.
The governor’s budget cited five specific initiatives that will address the underlying causes of high property taxes; “reforming Medicaid and continuing the State takeover of county Medicaid costs, promoting local government efficiency, providing mandate relief, fixing the State’s antiquated school financing system and providing substantial new school funding, and Employing an economic development strategy that will increase New York’s local tax base”. While his budget makes reference to spending, his budget ignores the very reason why New York is in fiscal crisis, the failure to control and reduce spending.
In the world of Albany politics, taxpayers need to understand the language of George Orwell; spending leads to reform and taxes lead to prosperity.