Yesterday, Governor Andrew Cuomo, Assembly Sheldon Silver and Senate Majority Leader Dean Skelos announced a tentative budget deal that would make huge cuts to Medicaid and education spending—and not involve any new taxes—to keep the budget to $132.5 billion. The NY Times notes a number of firsts, "The agreement, five days before the March 31 budget deadline, offered the prospect of Albany’s first on-time budget in five years. If enacted by lawmakers, the deal would cut the state’s overall year-to-year spending for the first time in more than a decade."
The Times Union also noted the odd experience of witnessing something like cooperation, "Officials on hand Sunday afternoon in the Capitol's ornate Red Room sounded almost giddy at the prospect of approving a fiscal plan that closes an estimated $10 billion deficit without raising taxes, and actually doing it a day or two early." Cuomo said, "I hope this is a template for a new era of cooperation and productivity between the executive and the Legislature... I'm hoping that this spirit of love and euphoria that I feel is infectious and grows and continues."
Cuomo apparently got the cuts he wanted, and the Post reports, "His breathtaking success in winning virtually everything he sought resulted from a carefully constructed strategy that neutralized powerful special interests and redefined the political landscape in Albany." Deputy Senate Majority Leader Thomas Libous said, "I've never seen anything like it, and I've been here for 23 years. It's amazing, and I have to give the governor credit. He even got the unions on the one hand and the Business Council on the other running ads for him." The Daily News even suggests Cuomo is the real steamroller!
But guess who's not happy: Mayor Bloomberg. He issued a statement on why the new budget sucks:
At the outset of the budget process, we urged the Governor and State Legislature to adopt a budget that treats New York City equitably and provides the mandate relief and reform that would allow us to absorb the State's heavy cuts. This budget agreement appears to fail on both counts, and worse, it passes heavy new costs down to the City. Voters should remember that New York City was singled out by Albany and eliminated from the revenue sharing program, while other localities took no more than a three percent cut.
"We appreciate that some of the cuts in education aid were restored. But make no mistake: the final budget still cuts New York City more than ever before. The restorations are merely a fraction of the $600 million necessary to avoid additional layoffs and cuts in the City's budget - beyond what was announced in February - for the upcoming fiscal year.
"While the outcome is disappointing and the results will be painful, it is encouraging that the Governor and State Legislature have worked together to produce an on-time budget. We hope that same spirit of collaboration leads to action on the hard work that remains to enable the City to do more with less: by stopping pension costs from skyrocketing further with a new tier for the City and ending the last-in, first-out law that exacerbates the negative impact of Albany's teacher layoffs on our public school children."
