Spending plan closes $9.2 billion gap with 90 percent cuts and 10 percent new fees and taxes.
Graphic shows what is and isn't included in the budget approved by the New York state Senate Tuesday night, and a couple things that aren't decided.Albany, NY -- New York state legislators approved the last piece of the 2010-11 spending plan Tuesday night, a week short of a new record for the latest state budget ever.
Gov. David Paterson, a Democrat, proposed a $134 billion budget in January. The deadline for the Legislature to approve it was April, the start of the new fiscal year. Instead, legislators negotiated through the spring and into summer. They voted in June on $136 billion in spending plans for education, health care, economic development, transportation and general operations.
Paterson said Wednesday morning that he was proud of closing a $9.2 billion budget gap with 90 percent cuts and only 10 percent new fees and taxes. “We didn’t borrow a dime,” he added. The state has a history of dipping into debt to balance its budget and there were plenty of proposals this year that would have relied on borrowing.
Critics said the state borrowed in exotic ways. A move to delay $2 billion in tax credits for big businesses for three years is, in effect, a no-interest loan from taxpayers.
Republicans said the process was the most slipshod, undemocratic and dysfunctional they had seen and relies too much on new taxes and fees.
This week’s budget deal also means the legislators will finally be given their paychecks. The state comptroller has withheld at least $7 million in salaries because of a state law that says legislators will not get paid if they don’t pass a budget by April 1.
More on the budget:
» Gov. David Paterson still pushing long-shot property tax cap [The Associated Press]
» NY state lawmakers finalize $136 billion FY 2011 budget [Reuters]
» New York budget gets mixed reviews [The Business Review]
» Impact of the finally passed New York State budget [WXXA Fox News Channel 23]
» New York Hedge Fund Tax Proposal Dies In Albany [The Wall Street Journal]
» Getting Paid, New York State Legislature Style [New York Daily News]
