NYSHEI News

With the state fiscal year set to begin on April 1, New York state is rapidly hammering out details on a state budget, and preparing for an on-time passage.

While an on-time budget is a much desired goal, perhaps more preferable would be a budget debated and discussed openly. Unfortunately negotiations of the 2008-09 state budget returned to levels of secrecy, rumor and innuendo, not seen around the already overly secretive Capitol in years.

Details of the budget will not be publicly known for days if not weeks after its final passage. What is known is that despite rhetoric of “tough times” and financial analysts projections of a worsening economy, state leaders have continued to increase spending at nearly twice the rate of inflation, while increasing the tax and debt burden in our state which already leads the nation in both dubious categories.

As most have noticed, the luster is already off the Paterson administration.

Governor David Paterson and legislative leaders announced a tentative budget deal that includes a 4.5% spending increase.

Those seeking a new era of open debate in New York will note that the deal was reached in private and before legislative conference committees met. Details of the budget have yet to be published, but the legislature expects to begin passing the $124 billion spending plan perhaps as early as this weekend.

Read more budget news in the New York Daily News, Binghamton Press & Sun Bulletin, New York Times, Albany Times Union.

We have already seen the departure of top level Spitzer personnel like Lloyd Constantine and Patrick Foye. As the political maxim that personnel is policy continues to take shape around David Paterson, we can expect more changes.

We can also expect these changes to gradually illuminate the new administration, and consequently what those changes mean to NYSHEI and ARIA.

Senior Fellow at the Manhattan Institute, E. J. McMahon offers his views on the troubled state of the economy and budget.

Mr. McMahon is a national authority on state budgets and the economy and will be a featured speaker at the NYSHEI Annual Meeting on June 2 in Syracuse, New York.

Senior Fellow at the Manhattan Institute, E. J. McMahon offers his views on the troubled state of the economy and budget.

Mr. McMahon is a national authority on state budgets and the economy and will be a featured speaker at the NYSHEI Annual Meeting on June 2 in Syracuse, New York.