New state budget will hit taxpayers hard
JAMES P. HAYES New York State Assembly
Because the deadline for publication of this column arrives before the final passage of the 2008-09 state budget, I can't say with certainty what the final outcome of this year's debate will be.

Unfortunately, what I can say is that taxpayers will once again be hit hard due to the refusal of Albany leaders to reduce spending and cut costs in a time of economic recession. I continue to use my voice - and my vote - to oppose these irresponsible acts of the majority in Albany who refuse to bring spending in line with the economic realities of the business cycle.

An economic downturn is the worst time to be raising taxes and fees. Yet that is once again Albany's answer to a projected $4.7 billion deficit resulting from years of overspending and the current decline in revenue from slower economic activity across the state.

In spite of a huge drop in anticipated revenue from Wall Street activity (which generally accounts for more than 20 percent of the revenue to the state's general fund) and big job losses in the financial industry, Albany leaders announced a budget deal this weekend that will spend at more than twice the rate of inflation.

With most rank-and-file legislators remaining in the capitol on Saturday and Sunday to participate in budget conference committee meetings and debate competing proposals between the Assembly and Senate, the old ways of secrecy and backroom deal-making took over in the name of getting an agreement done - or nearly done - by the April 1 deadline.

It didn't take long for leaders to rip through the

no new taxes" pledge announced when negotiations began in January. At the time of this writing, the majority in the Assembly and Senate are set to vote for higher taxes and fees on Internet sales, health insurance policies, credit cards and tobacco.

There is also a strong chance that higher gasoline taxes, higher mortgage recording fees and even a tax on beverage containers will make it into the final budget.

If past practice is an indicator, any spending not able to be paid for with higher taxes and fees will almost certainly be paid for with borrowed money as the state goes deeper and deeper into debt, mortgaging our children's future to fund all the things that the special-interest groups want and legislators just can't say no to.

State debt currently amounts to more than $54 billion. The $5 billion in interest and debt service the state pays annually was recently described by State Comptroller Tom DiNapoli as the fastest growing line item in the state budget. That's wrong.

People often ask me, "What's the solution?" To me, it is a simple answer but one that has eluded Albany leaders for years: cut spending and cut taxes in order to stimulate, not stifle, the economy.

I will continue to fight to represent this view as your representative in Albany, and I welcome your input, suggestions, advice and help.

Please feel free to contact me at my district office in Williamsville (634-1895) or via e-mail at hayesj@ assembly. state. ny. us.