By , Associated Press | March 30, 2008
ALBANY — Lawmakers and Governor Paterson, all trying to put a month of scandal behind them, are finding out just how hard the fiscal times are.
Closed-door negotiations to pass a state budget due by midnight tomorrow night fell dangerously behind today.
The Senate Majority Leader, Joseph Bruno, said he, Mr. Paterson, and the Assembly Speaker, Sheldon Silver, hadn't agreed on any major issues of spending or revenue. Messrs. Silver and Paterson had declined comment.
That means there's still debate over a so-called millionaire's tax to raise more revenue from New York's wealthiest, while a property tax relief fund and the college Tuition Assistance Program may face smaller increases in funding.
Passing a difficult budget on time despite an historically tumultuous month in New York state government was seen as a prize that would draw Democrats and Republicans together. They sought to craft a budget that would deal with a severe economic downturn and put behind them the scandal in which Governor Spitzer — who proposed the budget in January — resigned from office two weeks ago after he was implicated in a prostitution ring.
Mr. Paterson, a well-respected and well-liked lieutenant governor and former senator, had hoped to end the rancor of the Spitzer regime and usher in bipartisan cooperation. A timely budget was to be the test case.
The Legislature and Governor Spitzer missed an on-time budget by hours last year, after a budget was passed on time the previous two years. Before that, the budget was late 20 straight years.
A late budget creates a problem for lawmakers. They all face re-election in the fall by a constituency that has considered a timely budget to be a minimal job requirement.
"These are very, very difficult, challenging, distressing times," Mr. Bruno said today, after a closed door meeting with Mr. Paterson and other legislative leaders. "The choices that have to be made are very, very hard choices."
"I'm still hopeful we get it done on time, that's midnight tomorrow," Mr. Bruno said today. "The problem is, revenue is declining. Every day there is some new information that revenue is declining."
Still in the mix today were major but controversial revenue sources of temporarily increasing the income tax for those making $1 million or more, a doubling of the cigarette tax to $3 per pack worth $200 million to $500 million, requiring Internet giants such as Amazon.com to collect state sales tax worth $47 million to the state, closing corporate "loopholes" for millions of dollars more in tax revenue, and myriad other increases to user fees and narrow taxes.
"We're not agreeing to increasing any broad-based taxes," Mr. Bruno said.
Hours after the Legislature's top leaders had been scheduled to make final agreements on all areas of the overall budget, few if any individual areas were agreed to by subcommittees of rank-and-file members.
That increased the chance of Albany returning to the image it had tried to shed as being unable to pass a state budget on time.
But despite Mr. Paterson's statement that timely budget is an ethical and a fiscal responsibility, there was more talk at the Capitol of working beyond the deadline of the start of fiscal year. It might even be the responsible thing to do, said some.
"There's a lot at stake," Elizabeth Lynam of the Citizens Budget Commission, an independent fiscal watchdog, said. "A rush job isn't necessarily the best message."
The state gets its best estimate of revenues after April 15, when income taxes are due. But that's expected to provide an even gloomier outlook than the one that had leaders agree last week to a framework of a $124 billion budget that would increase spending about 4.5%.
"It's not good to see the state start a fiscal year without a budget," Ms. Lynam said, "But I think this is a year that more time might be advisable."
If the state passes a budget that revenues during the year fail to fully fund, lawmakers might be required to return to Albany to pass additional measures to raise revenue or reduce spending. In the 1992-93 fiscal year, Governor Cuomo and the Legislature had to return to Albany to cut school aid, forcing schools to reduce spending including personnel in the middle of the school year.
Negotiations were expected to continue into tomorrow.
