New York Gov. Andrew Cuomo proposed $132.9 billion budget today that would trim public education and Medicaid spending. The plan, Cuomo’s first as Governor, cuts spending by 2.7 per cent in an attempt to close New York’s $10 billion budget deficit.
Here are some highlights, courtesy of Bloomberg:
- State Operating Funds: $88.1 billion, up 1% from this year. The increase makes up for a $5.37 billion drop in federal stimulus funding.
- Layoffs: Up to 9,800 state workers if agreements can’t be reached with the state’s public employee unions. Overall, New York’s workforce would lose 11,423 positions.
- School District Spending Cuts: $1.5 billion for 2011-2012. This includes a $579.7 million cut to New York city schools.
- Medicaid Cuts: $2.85 billion
- Pension Funding: Calls for the state to pay its pension funds in IOUs with 5% interest, rather than with cash.
Cuomo avoided saying what he wants to eliminate from New York’s Medicaid program, probably in the hopes of avoiding attacks from the very vocal opponents of Medicaid cuts. Instead, the plan leaves decisions about specific Medicaid cuts to a special task force.
Cuomo’s plan also includes raising $455 million in additional revenue, primarily from new state lottery funds and improved tax enforcement.
In a speech to lawmakers, Mr. Cuomo lambasted Albany for building inescapable spending increases into future budgets and urged legislators to help reign in government spending. The New York Times notes that Cuomo’s budget proposal is marked by language that changes the formulas and rules that govern state spending.
The governor’s criticisms echoed an editorial, circulated by his office last night, that decries the budget process as a “sham” and a “metaphor for Albany’s dysfunction.”
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