N.Y. raises spending in budget

Despite mounting signs of a recession, New York lawmakers Wednesday adopted a $121.7-billion budget that boosts spending above the inflation rate, with large sums going to public schools, healthcare, colleges and business development.

Though the spending plan includes no hikes in personal income tax or other broad-based levies, it raises $1.5 billion in taxes and fees.

The 2008-09 fiscal plan is 4.9% larger than this year’s, though for the first time in a decade spending will be less than what was originally proposed by a governor. Still, New York is increasing expenditures whereas other states, including California, New Jersey, Florida, Maine and Vermont, are cutting costs and threatening to lay off state workers.

“They are spending at an unsustainable level, and they know that full well,” said Edmund J. McMahon of the conservative Empire Center for New York State Policy. “This is excessive and irresponsible.”

Gov. David A. Paterson acknowledged that the budget wasn’t perfect. But he said it was the best that could be achieved amid fallout from the March 12 resignation of his predecessor, Eliot Spitzer, and the pressing need to get a fiscal plan in place near the midnight March 31 deadline. The budget was the tardiest in four years, but far from the 133-day late record set in 2004.

Paterson also said lawmakers, having recognized the tough economic times, were willing to consider his proposal to cut spending by 5% to 10% in 2009-10. This could be achieved by eliminating hundreds of the state’s 640 public authorities, ineffective economic development initiatives such as the Empire Zones program, and property-tax rebate checks under a state tax-relief program, he said.

“Is this the answer to the economic problem? No,” Paterson said of the new budget. “What it is, I think, is a change in priority for how this state is going to operate. . . . We need to start thinking about some workable, sensible, achievable goals that we could meet for next year.”