CSEA Slams Governor's Proposed Cuts

ALBANY, NY (11/12/2008)(readMedia)-- CSEA is appalled by both the tone and substance of Gov. David Paterson’s latest round of proposed state budget cuts. The range and depth of the cuts without serious pursuit of better alternatives put forward by CSEA and other groups amount to a misguided slash and burn approach that will harm New Yorkers in every part of the state.

“Governor Paterson’s proposal is an assault on services at every level and will unnecessarily cause great harm,” said CSEA President Danny Donohue.

State operations, local governments, schools, and health care facilities will be hard hit in the Governor’s latest plan. Greater burdens will fall on local property taxpayers. Struggling New Yorkers will find it harder to get the help they need and the services they depend on every day, particularly when the governor’s approach will erode them on both state and local government sides.

CSEA has repeatedly told the Governor that it will not reopen contracts and yet he has now publicly proposed a range of giveback demands which raise legal and ethical questions. Choosing to play politics through the media is counterproductive.

CSEA is also disturbed by the continuing contradiction between the governor’s statements and actions.

“The Governor keeps saying that ‘everything is on the table’ but his proposals have only been about cutting back essential public services and shifting more burden to working New Yorkers,” Donohue said.

“Let’s also be clear here: no one should have any doubt about CSEA’s commitment to finding real alternatives,” Donohue said.

CSEA has offered a range of better choices the Paterson Administration has so far ignored:

Tap the state’s Tax Stabilization Fund – There is more than a billion dollars available in this fund which is sometimes referred to as the “Rainy Day fund”. A 2001 report from Standard and Poor’s indicated that using this fund during times of budgetary imbalance and extraordinary economic events is appropriate.

Enforce the law and collect state cigarette taxes from the Native American Reservations – Inaction by three consecutive administrations has caused New York to lose what some projections peg at nearly $1 billion annually, while also flaunting state law!

Pursue a prescription drug purchasing agreement through Canada – Several localities are already using this option at huge annual savings. Estimates suggest that simply establishing this option for the state workforce would save up to $400 million. A broader implementation of this approach for the state’s prescription drug purchases could yield even more savings.

Reform the Child Health Plus Program for greater fairness – Establishing premium contributions and co-pay levels at rates comparable to what state employees are required to pay would be a responsible and appropriate action to ensure the long term viability of the program and generate tens of millions of dollars annually. While there is great benefit in the Child Health Plus program, it should be pointed out that the program fills a void at taxpayer expense because too many businesses that could afford to do so, do not provide health insurance coverage for their employees and their families.

Seek a public/private partnership for the Empire State Plaza Art Collection – The 92 works of Art on display in Albany’s Empire State Plaza are conservatively valued at more than $1 billion. They provide a perfect opportunity for the Governor to advance his public/private partnership ideas and generate significant revenue from a state asset.

These suggestions, which were shared with the administration several weeks ago, could generate several billion dollars in savings. But the administration should also be taking a good hard look at eliminating unnecessary political patronage jobs of their own making along with holdover appointments of the Pataki and Spitzer administrations. The Paterson Administration has yet to clean house.

“The Governor should also aggressively pursue revenue collection through appropriate state agencies,” Donohue said. “At a time of cutbacks, revenue collection is too serious an area to ignore and those who owe the state money should pay their fair share.”

CSEA is also renewing its call for reinstituting the “Millionaires’ Tax” to ensure that the State’s super wealthy shoulder a fair burden when working New Yorkers are being targeted for pain by the Governor’s approach.

“New Yorkers should be outraged that Governor Paterson continues to seek more cuts in essential services and programs that affect their quality of life even though there are clearly better ways to save money and protect those services,” Donohue said.

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