Public officials praise passage of new state budget

by Laura Curcio
Niagara Wheatfield Tribune, April 5, 2007
Lewiston Porter Sentinel, April 7, 2007

Government officials are very pleased with Gov. Eliot Spitzer’s leading effort in the approval of a timely budget that addresses all of the top priorities for this year. The newly enacted budget shifts spending priorities within the areas of education, health coverage, property tax relief, aid to distressed cities, and cuts business taxes that will benefit New York for years to come.

“This budget marks a tremendous achievement in focusing government on making smarter, more responsible choices for the future,” Spitzer said. “Taken together, these proposals will set New York on a new path, and I applaud the Legislature for joining me in this important first step.”

The 2007-08 enacted budget is a $120.9 billion plan that increases overall spending by 7.3 percent. Supported by state tax dollars, the $51.6 billion general fund budget proposes growth in spending of 4 percent, as compared to 10 percent last year.

“This budget will provide much-needed tax relief to middle class families and seniors. It’s especially important in Niagara County, which has some of the highest taxes in the state,” Assemblywoman Francine DelMonte said. The final budget provides record aid to struggling upstate cities, including Niagara Falls. “I was proud to support a budget that makes improving the economic climate in upstate New York a high priority.”

Schools to receive historic investment of resources

The state budget provides an historic level of investment in schools through a new aid formula based on need, while implementing new accountability measures and expanding the number of charter schools, which will apply a total increase of $1.76 billion in overall education aid.

This budget creates a Foundation Aid formula, which targets districts most in need with an increase of at least 3 percent. It also provides for funding of $438 million for Universal pre-kindergarten, an increase of $146 million, or 50 percent. The budget provides for school facilities funding with an increase of $148 million for EXCEL and other building aid.

Other aid increases include approximately $364 million in other school aid programs, such as transportation aid and BOCES funding, bringing total funding to $19.64 billion in 2007-08.

Access to health coverage for all children

The budget significantly expands health care coverage for currently uninsured children, as well. Spitzer’s proposal to expand Child Health Plus to families will make coverage accessible to nearly all of the 400,000 currently uninsured children in New York under the age of 19.

Spitzer called the budget an important first step in making New York the healthiest state.

“Providing all children with access to health care coverage is a momentous achievement,” he said. “The budget advances a health care system based on the principle of patient-centered care, while at the same time bringing down the Medicaid growth to its lowest level in years.”

It sustains $2.2 billion in funding for home and community based care and provides additional investment in vital aging programs like nutrition assistance, long-term care information, and referral and resources for family caregivers. Restructuring the state’s health care system, it will save the state nearly $1 billion in 2007-08. Furthermore, more than $100 million goes to hospitals in every region of the state serving the largest numbers of Medicaid patients.

Budget includes expanded property tax relief

The budget includes a tax relief program that targets its benefits to middle income homeowners. Under Middle Class STAR, New Yorkers will receive a STAR tax rebate based on a sliding scale tied to income. For example, this means eligible homeowners in Niagara County with incomes less than $90,000 will receive an average rebate of $405; between $90,001 and $150,000 will receive an average rebate of $303; and between $150,001 and $250,000 will receive an average rebate of $202.

The budget also provides for a major expansion of aid to distressed cities, towns, and villages. Cities will get some of the highest increases over the next four years; Buffalo will receive an additional $12.8 million in 2007-08 and an increase of $57 million over four years.

The state budget provides $150 million worth of targeted business tax relief in the form of a rate cut for all corporations, banks, and insurance companies. It also passed a series of bills to help small businesses grow and create jobs. “Manufacturing and agriculture are a crucial part of Niagara County’s economy and heritage,” DelMonte said. “It’s imperative that we support these businesses that are creating jobs.” The tax relief was financed by eliminating four tax loopholes. Because of this change, small and large companies will now pay a consistent lower effective rate.