Business Council Calls Deficit Reduction Agreement a Necessary First Step

• by Business Council of New York State

ALBANY, NY (12/02/2009)(readMedia)-- "The deficit reduction plan approved by the legislature is a necessary first step in dealing with New York's fiscal crisis, even though we have concerns that it does not fully address the current deficit," said Kenneth Adams, president and CEO of The Business Council of New York State, Inc.

"The agreement recognizes that New York cannot keep spending beyond its means, and has to begin to reign in spending. Our economy in New York will not recover if it continues to be overwhelmed by excessive government spending and rising taxes," added Adams.

"Importantly, this DRP package does not rely on new taxes or fees, since that would further damage the state's economic recovery," said Adams.

"The passage of Gov. Paterson's proposal for a new public employee pension tier to lower pension costs for new hires is an important step toward reducing long term costs at the state and local level, and is something The Business Council has supported," said Adams.

"Gov. Paterson should now use the powers available to him to make further cuts to keep our state solvent," said Adams.

"The next challenge will be tougher but it is essential -- closing large future budget gaps without resorting to tax increases. When the legislature begins next year's budget deliberations they should start by committing to no new taxes. They also need to enact vital reform measures, including a state spending cap and a local property tax cap to help get future spending under control," said Adams.

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