State Senate, Assembly Differ On Spending Outlook
ALBANY — The Republican-led Senate says there's slightly more money to work with than projected in the governor's state budget proposal, while the Democrat-led Assembly predicts a recession and $615 million less to spend.
And so begins the annual budget dance that will determine how much New Yorkers will pay into, and get from, their state government. The Senate Republicans predicted yesterday there will be $99 million more in revenue than Governor Spitzer included in his $124 billion budget proposal.
"The additional revenue forecast by the Senate, along with other revenue sources and avails [available revenue], will help us re-prioritize the governor's budget," Senate Majority Leader Bruno said.
Specifically, the Senate's GOP majority wants to increase funding for local property tax relief, increase aid for suburban schools — especially on Long Island — that get smaller increases than poor districts under Mr. Spitzer's plan, and take a hand in deciding where $1 billion in capital spending will be spent during this election year. The Assembly Democrats' forecast predicts a mild and short recession.
"New York and other parts of the nation are in the midst of a significant economic slowdown that is being felt by everyone from low-income wage earners to small business owners to the largest financial service firms," Assembly Speaker Sheldon Silver said.
The Assembly's Democratic majority will try to reverse Mr. Spitzer's slight reduction of some state school aid increases. Mr. Silver also wants to help thousands of New Yorkers keep their homes despite being caught by poor judgment or predatory lenders in the national subprime mortgage crisis. Mr. Spitzer's $124 billion budget would increase spending by 4.8% — twice the inflation rate — and fill a $4.7 billion deficit for the fiscal year beginning April 1. Staff members for Messrs. Spitzer, Bruno, and Silver begin meeting today to develop a consensus on projected revenues to spend in the coming fiscal year, due March 1.
