Spitzer's budget raises taxes, spends too much
JAMES P. HAYES New York State Assembly
Gov. Eliot Spitzer recently released his 2008-09 budget, which proposes to spend a record amount of $125 billion, an increase of 5.1 percent over last year and almost twice the rate of inflation. The plan relies on $1.1 billion in nonrecurring revenues (a risky budget practice commonly known as "one-shots") and proposes 46 new fees and fines that are expected to generate more than $300 million. At the same time, the plan allocates less money for our local schools and adds hundreds of millions of dollars of debt to the state credit card.

Just one month ago, during the State of the State message, the governor made a promise not to raise taxes this year, yet his budget plan relies heavily on raising taxes and fees and targets everyone from motorists to online shoppers. Specifically, the governor's budget proposes a new driver "endorsement fee" and a new "insurance fee" payable to the Department of Motor Vehicles; new mortgage recording fees for home buyers; a newly constituted tax on gasoline; new taxes on health insurance policies and even a hike in tuition at community colleges.

What's worse is his recommendation to cut the increased tax rebate amount that was promised to recipients of the Middle Class STAR program last year.

It's a tax and spending plan that will cost the average middle class family more than $400 in needless new fees and charges. It will go into effect unless major changes are made by the Legislature during upcoming budget deliberations.

These proposed budget increases come at a time when most Amherst families are already feeling the pinch of higher prices at the grocery store, higher tolls on the state Thruway and outrageously high prices at the gas pump due to higher oil prices and New York State's exorbitant gasoline taxes. It will almost certainly be made worse by the demands of the big spenders in the Assembly who are expected to add hundreds of millions of dollars more to the budget before its final adoption on April 1.

It's the wrong approach and as the ranking member of the Assembly Ways & Means Committee, I will be leading the fight against it.

With economic storm clouds gathering and the nation teetering on the brink of a recession, New York should be cutting spending and cutting taxes. A bipartisan effort is already under way in Washington to enact a sizeable tax cut, in the form of a rebate, to help stimulate the economy and help overburdened families. New York should do the same. Instead, Gov. Spitzer's proposed cut in the Middle Class STAR tax rebate program is in direct opposition to the bipartisan effort in Congress to cut taxes now.

In order for the Western New York economy to grow jobs, state government must reign in spending, pay down debt and cut taxes to lower the cost of doing business in New York. While that goal seems to have eluded the governor in his budget proposal this year, it's the goal I'll keep fighting for as your representative in Albany.

As always, I appreciate hearing your views. Please feel free to contact me via e-mail at hayesj@assembly.state.ny.us or buy mail at 5555 Main St., Williamsville, NY 14221 or by calling 634-1895.