DIVISION OF THE BUDGET
ELIOT SPITZER, GOVERNOR
March 4, 2008 CONTACT: Jeffrey Gordon
STATEMENT FROM NEW YORK STATE
BUDGET DIRECTOR LAURA ANGLIN
As was the case last year, Mark Page’s testimony to the City Council about the effect of the Executive Budget on the City was inaccurate and highly misleading. He is attempting to shift the blame for the City's budget cuts from where it rightly belongs: the economic downturn that is affecting every level of government.
Despite increasingly challenging fiscal times, Governor Spitzer’s Budget proposal provides a net positive impact for New York City of nearly $671 million in 2009. This is in addition to a continuation of the Medicaid Cap and the Family Health Plus Takeover, which will save the City an additional $520 million in 2009 alone.
Furthermore, even while closing a budget gap of $4.6 billion, the Executive Budget substantially increases State support for New York City schools. The amount of State Aid to New York City schools is equal to the amount projected at the time of the Enacted Budget last year-and certainly not $349 million less. Following a $718 million State aid increase last year, the Budget includes an additional $539 million in funding for City schools. And while the Mayor has been arguing that this school aid increase is below the City’s budgeted assumptions, the Governor’s proposal provides $285 million more in school aid than the City would have been entitled to under current law. Furthermore, the Mayor's January Preliminary Budget cuts City aid to schools by more than $500 million over two years. In essence, the Mayor wants the State to increase its contribution to cover the City’s own share of education costs.
Additionally, new economic development initiatives advanced in the Executive Budget will support a range of new projects essential to the City’s efforts to grow its economy and create new jobs.
Despite these misleading comments by Mark Page, the Governor and the Mayor share many priorities, such as helping build a new Moynihan Station and passing Congestion Pricing. We will continue to work hard with the City to advance these shared objectives.
Click the links below for more specific information regarding Executive Budget Impacts: