Once again, Governor Paterson’s budget proposals have New York State reeling.
Under a $121 billion state spending plan released two weeks ago, funding would increase by less than one percent state spending would be cut by $9 billion and taxes and fees increased by $4.5 billion. The proposed budget also includes $1.5 billion in “one-shot” revenue sources.
Some $272 million would be saved by eliminating 2,100 businesses from the Empire Zone program; another $100 million would be saved from other “non-essential projects.”
•In health care, Medicaid reimbursement rates would be reduced. Some $855 million would be raised by increasing fees paid by insurance companies.
Coverage for Family Health Plus would be expanded to include more working adults and the annual welfare grant would be increased for the first time in 18 years.
•In transportation, new license plate fees would increase from $15 to $25 and the learner’s permit written exam would be replaced with a five-hour or driver education course, saving $2.3 million in test administration costs.
The state’s five-year transportation capital plan would be scaled back by $569 million to $17.95 billion and $85 million for a Dedicated Highway Bridge Trust Fund would be raised through increased fees for vehicle registrations, driver’s licenses, trucking permit renewals and auto rentals.
•In education, tuition for in-state SUNY students would increase $620 a year—a 14 percent jump—and school aid would be cut $698 million.
The middle class STAR rebate program would be eliminated and $26 million in public library aid would be cut over the next two years.
•In business, funding for tourism and marketing programs, including “I Love New York,” would be cut, producing $20 million in savings through 2011; state spending on public TV and radio would be slashed by 50 percent.
•In the arts, there would be a $7 million cut in New York State Arts Council grants
•In public safety, $28 million would be cut from the prisons budget, the Tryon Residential Center in Fulton County would be downsized, Camp McGregor, a minimum-security prison in Saratoga County would be closed, and several prison farm programs, including a beef operation at the Washington County Correctional Facility and a dairy operation at the Greene County Correctional Facility would be shuttered.
Among the proposed new fees or taxes—and there’s something for everyone:
•Personal services such as barbering, manicure, and massage would be subject to sales tax.
•Movies and sporting events would be taxed as would taxis, limousines and buses and cable and satellite TV and radio services.
•The tax on wine would be increased from 18.9 cents per gallon to 51 cents per gallon and the beer tax would increase from 11 cents per gallon to 24 cents per gallon.
•Driver’s licenses original and renewal fees would increase from $50 to $62.50.
•Raises administrative fees for various park activities including camping, cabin rentals and Empire passports.
•Establishes a new entrance fee of $10 for every horse entered in pari-mutuel races.
•Creates a new fee of $10 for filing a paper personal income tax return.