Patterico's Pontifications


Curing the New York State Budget Deficit

Filed under: Economics,Politics — DRJ @ 3:31 pm

[Guest post by DRJ]

In response to a projected $12.5B budget shortfall, New York Governor David Paterson may propose a budget that’s heartless by Democratic standards:

“New taxes, deep cuts to education and health care, and a restructuring of the state’s economic development programs will be hallmarks of Gov. David Paterson’s first budget plan to be released in two days, according to interviews of people briefed on components.
The health industry will be particularly upset, although Paterson’s cuts will raise blood pressure throughout. He will call for about $3.53 billion in health care cuts, not including federal share of matching Medicaid dollars, which could be another $2 billion in cuts.

The biggest hits will be to insurance companies, which will be asked to come up with about $855 million in extra assessments. Those amount to more taxes on health insurance plans, increased sales tax on hospital discharges and more shifting of general fund costs to the Insurance Department so that insurance companies pay for programs such as Timothy’s Law, the mandated coverage of mental health treatments.

Bad news for people who need insurance, get sick or want an education in New York, as well as for those who buy sodas, license plates, clothing and gasoline. The report states taxes on these items will go up, including a $404M obesity tax on non-diet sodas.


15 Responses to “Curing the New York State Budget Deficit”

  1. I wonder why the intellectuals continue to ponder why the rest of the state (outside of NYC) is quickly emptying out, thereby leaving less residents to shoulder an ever – increasing tax burden. Econ 101 seems to have eluded these folks – and I include the idiots in the IL legislature in that bag as well.

    Dmac (e30284)

  2. [Insert gratuitous Stevie Wonder reference here.]

    Official Internet Data Office (3e33fd)

  3. Does this mean that Paterson’s not going to be able to pay for as many overnights with his girlfriends on the state’s dime?

    daleyrocks (5d22c0)

  4. Diet Coke tastes better than the sugar stuff anyway.

    gp (4db77f)

  5. Just for clarification… are these cuts from the actual budget? Or are they cuts to the assumed increases?

    Gesundheit (9ca635)

  6. The state is going down the toilet.

    All they do is raise taxes to pay Teachers, Cops, Firefighters and Administrators more and more and more and more to do more and more and more that the Private Sector should be doing.

    It is like France.

    Da'Shiznit (089453)

  7. Gesundheit,

    This article is based on a report on the proposed budget, but it hasn’t been released yet. Your guess is as good as mine what “deep cuts” means. I think it sounds like actual cuts.

    DRJ (b4db3a)

  8. I’m always skeptical about the extent and throughness of budget cuts proposed by people — by politicians — of the left. When you strip away the BS — and certainly the gameplaying foisted onto the public by government-employee unions — a balanced approach to a deficit often means nothing more than raising taxes by, say, $100 and cutting expenses by $2.50.

    Mark (411533)

  9. And increases in spending by $103.

    Scott Jacobs (90ff96)

  10. Seems to me that the reason for all the cuts in healthcare are to provide a “need” that justifies a federal push for a nationalized health system.

    DAve (b2abc9)

  11. As a resident of NYS, it fails to surprise me any more. The ONLY saving grace is that the ENTIRE state government apparatus is controlled by Democrats.

    When we had divided government there was the “three men in a room” mentality. The three: The governor (sometimes R, most times D), the State Assembly Leader (D for s long as I have lived there, and I had not lived in NY for about 1/4 of my life), and the State Senate Majority Leader (up until this election R but now also a D). Corrupt as all get-out; back room dealings in defiance of any “sunshine” laws. Oh yes, now the 2 legislative leaders are both from the NYC/LI area.

    Any stuff they pull will be an indictment of the Democrat party. End of story. And many voters will hold them accountable.

    Dr. K (e7aea2)

  12. I live in New York and the Budget is just too bloated. Republicans and Democrats share the blame for seeing who could give the most to every union on the block. The State Budget is more than $120 Billion per year, so even a three to five billion dollar cut, would be no more than a 3 percent cut (or cancelling an inflation adjustment to the budget. Hardly tightening the wallet) In fact, one gets the impression that these measures are made to look punitive so the state officials can say to the people, stop us before we cut again! And perhaps to mug federal legislators to hand over some more national treasure to the spendthrifts in New York and California.

    eaglewingz08 (98291e)

  13. Does this mean that Paterson’s not going to be able to pay for as many overnights with his girlfriends on the state’s dime?

    Comment by daleyrocks — 12/15/2008 @ 5:11 pm

    truthnjustice (d99227)

  14. Yep. Those are precisely the same things. And here is the best response to Yet More Trollery:

    Eric Blair (57b266)

  15. Comment by Eric Blair — 12/16/2008 @ 5:20 pm
    It is unfortunate that The One forewent public financing for his campaign, or else we could have been the beneficiaries of a comprehensive audit of his expenditures via the FEC.
    It would be interesting to know how much money the campaign spent on the transportation and housing of the Obama girls for the last two years?

    Another Drew (64fe9d)

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