Updated 12/16/2008 08:02 PM
Governor Announces Cuts To Education, Health Care To Close Ballooning Deficit
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Fashioning the spending plan to deteriorating times, Governor David Paterson brought down the ax Tuesday, slashing education and health care, hiking SUNY and CUNY tuition and more than 80 new or increased fees from a beautician's license, to clothes, taxis and sugary drinks.
Health cuts could shutter hospitals and four upstate prisons are slated to be closed.
"We can't delay this problem into the future as we have done in the past. In some respects, that's how we got here," said Paterson.
The governor's Albany partners gave his presentation a lukewarm reception, colder from Republican Dean Skelos, who has a teetering grip on the state senate.
More committed were the senate's Democratic leader and Assembly Speaker Sheldon Silver, who nevertheless called for shared sacrifice.
"This package won't be balanced on the backs of one particular class of residents of this state. It won't be students, it won't be state workers, it won't be the poor, it won't be the wealthy," said Silver.
The wealthy will find new limits on tax deductions. But at least for now, no income tax hike. Paterson said he'd agree to it as a deal-closer.
Instead, there will be a collection of fees, including more tobacco taxes, plus more than doubling taxes for beer and wine. Cable TV is also getting a new tax.
Those feeling stretched will find no cheap getaway.
Paterson is proposing higher drivers license and car registration fees, a one percent jump in car rental tax and a new tax on limos, buses and cabs. Add to that the elimination of the current cap on gas tax.
"It seems that David Paterson is going out of his way to nickle and dime middle class and poor New Yorkers to avoid putting a broad base tax increase on the upper one or two percent," said Lawrence Levy, Executive Director of the National Center for Suburban Studies at Hofstra University.
There are two wildcards in all of this -- getting it through Albany quicker than usual, as Paterson wants, and federal aid.
Albany is expecting some bailout money from Washington DC that may make the budget proposal easier, but it isn't banking on it either.