New Yorkers for Fiscal Fairness

Governor Paterson Talks of “Shared Sacrifice” but
his Budget Suggests “Spared Sacrifice”

New Yorkers for Fiscal Fairness is disappointed that the Governor decided to allow working class New Yorkers to shoulder the burden of this budget deficit. While the Governor calls for "shared sacrifice," his budget seems to allow for mostly "spared sacrifice." Increasing fees and enormous cuts in state spending on education, healthcare, and state services could be mitigated if the Governor had simply chosen to listen to the people of New York State who have been calling for an income tax increase on the wealthiest 5% of New Yorkers. Poll after poll shows that New Yorkers support an increase in the top tax rates of the wealthiest state residents.

Yesterday, over 100 Economists from around the state urged the Governor to adopt a balanced approach to closing the state deficit. They suggest that an income tax increase on the wealthiest would be less harmful to the state's economy then massive cuts to state spending. They posit that we need to keep as much money in the local economy as possible in order to effectively get out of this recession and close the budget gap.

A comprehensive solution means that all New Yorkers need to help solve this problem and that the wealthiest among us have an even greater obligation to contribute. We fear that the Governor's budget will continue to shift more costs to the county level and leave it up to the property tax payers in NYS to make up the difference. The governor says that he fears that wealthy New Yorkers will leave the state if we increase income taxes on the rich. We believe what will drive people out of NYS are bad schools, deteriorating hospitals, and dirty streets. This budget will cause a deterioration in the quality of life for many working families in NYS that could be avoided by asking the wealthiest to pay their fair share of taxes.

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Hunger Action Opposes Cut in SSI Benefits; wants details on anti-obesity tax

The Hunger Action Network today said it opposed cutting the state supplement for the disabled, the blind and poor senior citizens.

"We appreciate the Governor's leadership in proposing the first increase in the basic welfare grant in 18 years, even though the proposed hike will keep them in severe poverty. But we have to oppose taking money away from disabled and poor senior citizens," said Mark Dunlea, Hunger Action Network of NYS.

Hunger Action Network noted that savings in the SSI cuts were much greater than the amount being spent on raising welfare benefits. Welfare participants receive much lower benefits than SSI participants.

Hunger Action Network also said that while it supported the concept of an anti-obesity tax on soda and other beverages, it needed to see more details on how the $400 million in revenues is to be invested. The budget documents say the money will be dedicated to health initiatives. Hunger Action wants to make sure that some of these funds are allocated to nutrition initiatives, particularly in outgoing years, such as:

- fund the healthy schools act, a Spitzer proposal that would have set higher nutritional standards for school foods while providing up to $40 million to support the purchase of locally grown food and raise the school meals reimbursement (the state supplement to the feds haven't been raised in 20 years and was subject to the cuts last year)

- creating an additional food supplement to the welfare program (one problem with raising the basic grant is that it counts as income for food stamp purposes, so they will lose $1 for every $3 increase)

- increasing the state supplement for the Women, Infants and Children program

- funding a match for any food stamps used at farmers markets (there was a privately funded pilot program for this last summer by the Farmers Market Federation)

- doubling the $25 or so of food stamps coupons given to seniors and WIC recipients

- providing staff support to the NYS Food Policy Council

- providing a funding base (e.g., $50 million) for infrastructure investments needed to expand our local food economy (more wholesale farmers markets, small scale food processing, transportation and distribution systems for farmers, etc)

From the Governor's briefing book

Reduce Supplemental Security Income (SSI) State Benefit. The Federal Supplemental Security Income (SSI) program provides cash assistance to the aged, blind and disabled, and is administered by the Social Security Administration. New York State provides additional financial support to its SSI recipients. The 2009-10 Executive Budget reduces the 2009 state benefit for SSI recipients living in the community by between $16 and $28, effective June 1, 2009. For individuals living alone, the benefit will be reduced by $24, from $761 to $737. However, a recipient’s total monthly SSI benefit will still be $9 to $34 higher than their 2008 monthly benefit, as a result of the offsetting impact of a 5.8 percent cost of living increase to the federal benefit. (2009-10 Savings: $84 million; 2010-11 Savings: $79 million)

Increase Basic Allowance Portion of the Public Assistance Grant. The monthly public assistance benefit is comprised of a basic allowance and a shelter allowance and varies based on family composition and county of residence. For the first time in 18 years, this action would increase the non-shelter portion of the public assistance grant for approximately 200,000 households by 10 percent, from $291 to $320 in January 2010; by another 10 percent to $352 in January 2011; and by a final 10 percent to $387 in January 2012. The average public assistance family would be eligible for approximately $100 more a month by the time this proposal is fully implemented. This portion of the grant has not been increased since 1990. (2009-10 Cost: $8 million; 2010-11 Cost: $41 million)

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Statewide coalition representing Medicaid beneficiaries supports Paterson’s health reform agenda

Medicaid Matters New York (MMNY), a coalition of over 130 groups representing those most affected by Medicaid discussions – Medicaid consumers – strongly supports the health care reforms proposed by the Governor today. MMNY applauds the Governor's continued commitment to improving health care for all New Yorkers, including expansion of Family Health Plus and elimination of some of the barriers to getting and keeping coverage, particularly in tough economic times. Though there is concern about how health care cuts in the deficit reduction plan will affect everyday people, the proposed health care reforms are crucially important in ensuring that public funding is spent on quality care for Medicaid beneficiaries.

“We are pleased that the ‘patient first’ agenda that has been moving New York toward a more efficient and effective health care system is being continued. Spending Medicaid dollars more wisely becomes even more urgent in the face of a fiscal crisis,” said Denise Soffel, MMNY Coordinator and Health Policy Coordinator at the National Center for Law and Economic Justice.

“Reforming the system and expanding access to insurance coverage for more people will improve care tremendously. Additional funding for primary care and public health services is the correct direction for this state to take,” added Judy Wessler, MMNY Steering Committee member and Director of the Commission on the Public’s Health System.

MMNY will continue to fight for the interests of Medicaid beneficiaries in the ongoing effort to reform and improve New York’s public health care system, and looks forward to working with the Paterson administration and the Legislature to create the consumer-friendly, patient-first system that New York needs.

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Paterson Budget Fails to Ask Wealthy to Share the Burden

Time for a Reversal of the Upside Down Policies of the Past, Says Citizen Action

Albany – Citizen Action of New York criticized the Fiscal Year 2009-2010 budget released today by Governor David Paterson for not increasing taxes on high-income individuals, which would have permitted him to avoid additional cuts to critical services New Yorkers depend on.

“Low income and middle class New Yorkers are hurting from the combined effects of the national and state policies that have led to mortgage foreclosures, job losses, health care premium increases, and cuts in public services. Last month, New Yorkers voted overwhelmingly for a total reversal of the upside down policies of the past two decades towards an economy that works for all of us,” said Scharff, Executive Director of Citizen Action of New York. “President-Elect Obama is leading the way by proposing a bold stimulus package to jump-start the economy. Unfortunately, Governor Paterson is taking a very different approach: cutting education, and other critical state investments, while refusing to ask the wealthy who benefited from the boom to make any contribution.”

“Cuts in school aid will not only harm children, they will also damage our state's fragile economy. Our children's future and our State's economic future both require that we balance the budget by asking the wealthiest New Yorkers to pay their fair share, rather than cutting school aid. After years of under-funding and delays, in 2007 the state finally committed to reducing class size, investing in teacher quality, and expanding reading, math, after school, pre-school and English language learner programs. The Governor’s budget cuts would undo these advancements and reverse our progress toward closing the racial achievement gap," said Scharff, who is also co-chair of the Alliance for Quality Education.



“No one can deny the budget deficit is real. However, the underlying problem is not increased spending on education and health care, but tax policies of the last two decades that have reduced the share of taxes contributed by the wealthy, and provided loopholes to allow large corporations to avoid their fair share of taxes. “The issue is whether we should address the deficit by asking the wealthiest New Yorkers to contribute a little bit more by raising the income taxes on the wealthiest New Yorkers, or whether to slash programs that the poor, people of color and the middle class depend on.”

Scharff pointed to findings that the large multi-year tax cuts enacted between 1994 and 2005 are now reducing state revenue by over $17 billion per year.

“Governor Paterson is asking everyone to share the burden, but he’s forgetting that not all New Yorkers will feel the burden the same,” said Scharff. “It’s like we are all on a mountain, but some are standing at the top and some are barely holding on. If we all take one step down, it will be mostly poor people and people of color who will fall off the edge.”

Citizen Action of New York is a statewide membership organization that organizes for social, racial, economic, and environmental justice. Citizen Action maintains a new web page to provide the public with information to be more effective in fighting for a fair budget: www.fightthecuts.org.

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OVER 200 NON PROFITS AND SERVICE PROVIDERS TELL GOVERNOR PATERSON: BALANCING BUDGET GAP WITHOUT SHARED SACRIFICE WILL DEVASTATE NEW YORK

Groups Who Support and Provide Services to Seniors, Children, Homeless, Mentally Ill, People with AIDS: Real “Shared Sacrifice” Includes Contribution from New York’s Highest Earners

New York City— As Governor Paterson proposed his 2010 Executive Budget, the One New York: Fighting for Fairness Coalition called on the legislature to adopt broad based progressive revenue measures to soften the blow of the Governor’s $9 billion in proposed cuts.

“While some of the Governor’s revenue proposals make sense, increasing the sales tax and SUNY/CUNY tuition are painfully regressive, hitting those families who have not prospered economically in recent years. The Governor needs to step up to the plate and ask high-earners to pitch in to balance the budget. That was done in 2003 and the sky didn’t fall. Scores of economists from across the state, including Nobel laureate Joseph Stiglitz, have urged the Governor to follow the economically sound course by seeking modest increases in the top individual income tax rates,” added James Parrott, Deputy Director & Chief Economist, Fiscal Policy Institute.

The Coalition— representing more than 200 non-profit organizations, service providers, advocates, and unions that supply front line services to many of New York’s most vulnerable citizens— called on the legislature to examine broad based revenue options such as an increase in the Personal Income Tax for the state’s high income earners. Governor Paterson’s budget raises revenue principally through regressive fees and taxes. The Governor is also proposing billions of dollars in cuts to health, education, human needs, legal services, and other programs that are expected to have a devastating impact on communities throughout New York.

“Progressive tax increases are the most equitable and least painful means to address the economic crisis that New York State faces and must be part of the solution. In fact, statewide polling shows broad support for increased taxes on high income earners to protect from cuts in government services. Governor Paterson must take the lead in calling for sacrifice to be shared by all New Yorkers,” said Jennifer March Joly, Executive Director of Citizens' Committee for Children of New York.

"Shared sacrifice must mean exactly that. We cannot ask our schoolchildren, our seniors, or New Yorkers with disabilities to bear the burden of our fiscal crisis alone. Fairness and commonsense demand that we also ask the wealthiest New Yorkers, those who have seen their state tax burden cut in half, to contribute a little more to the cost of keeping New York running. Modest income tax increases on the rich have helped keep our state solvent before, and they can help get us through this recession without sacrificing critical public investments," said Dan Cantor, Executive Director of the Working Families Party.

Two One New York member organizations released new polls this week showing that New Yorkers strongly support raising the income tax on high earners as a way to prevent cuts in vital services. The Working Families Party released a poll showing that 75% of New Yorkers support raising the income tax on those earning over $200,000 a year. A poll released by the Citizen’s Committee for Children showed that 73% of New Yorkers prefer income tax hikes on those earning over $250,000 to cuts in services. According to the Fiscal Policy Institute, a slight increase in income tax rates for those earning over $250,000 would raise between $5 and $6 billion.

While recognizing the revenue increases in Paterson’s plan as movement towards more balanced budgeting, the Coalition urged him to go further.

“We need to keep in mind that cuts don't come without a price— a human price. The Governor has shown he understands the importance of supporting vulnerable New Yorkers during this economic crisis by increasing the welfare grant and expanding Family Health Plus and indigent care. But he needs to go further to find a broader solution that prevents deep cuts to the programs and services our children, our elderly, our sick and our disabled depend on. New Yorkers support progressive revenues to prevent profound and lasting harm to our safety-net services because they understand at the end of the day, we are all in this together. A more equitable solution must be found,” said Nancy Wackstein, Executive Director United Neighborhood Houses.

New York has been here before and has proven resilient in times of crisis. Following the economic downturn after September 11, the national recession, and the burst of the dot.com bubbles, New York faced a similar crisis. At that time all New Yorkers were called to sacrifice. In addition to budget cuts on critical programs for New York’s children and families, New York temporarily increased income tax rates. The increase expired in 2005. According to the Fiscal Policy Institute, the increases had no negative economic impact. In fact, during this time, high-wage earners saw rapid income growth and the number of high-earners living in New York grew dramatically and the state experienced job growth.

Last week— coordinated by Coalition member the Fiscal Policy Institute— more than 100 economists throughout New York State sent a letter to Governor Paterson imploring him to take "a balanced approach" to closing the gap in the state budget, including raising taxes on high-income households. The economists argued that steep cuts in state spending would weaken the already struggling New York economy and will hurt poor and middle income New Yorkers. The letter was signed by professors William J. Baumol, Ronald G. Ehrenberg, Robert H. Frank, Teresa Ghilarducci, Alfred E. Kahn, Jeff Madrick, Dimitri B. Papadimitriou, Edward Wolff and more than 100 of other economists from across New York.

The One New York: Fighting for Fairness Coalition includes over 200 organizations and counting who advocate for and serve New Yorkers needing services such as: AIDS services, child care, child welfare, education, health care, homeless housing, housing, immigrant services, income support, legal services, people with disabilities, senior services, youth services and other vital areas services.

Organizations represented in the coalition include: The Legal Aid Society; Citizen Action of NYC; Coalition for the Homeless; Working Families Party; Education Voters of New York; Alliance for Quality Education; New York Immigration Coalition; NY ACORN; Citizens' Committee for Children of New York; Campaign for Fiscal Equity; Legal Services NYC; Human Services Council; United Neighborhood Houses; and the United Federation of Teachers and American Federation of Teachers.

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STATEMENTS FROM ONE NY MEMBER ORGANIZATIONS ON GOVERNOR PATERSON’S PROPOSED CUTS

Steven Banks, Attorney-in-Chief, The Legal Aid Society: "The proposed State cuts for criminal defense and civil legal services will hurt New Yorkers accused of crimes and families and individuals who need legal help in the midst of this severe economic downturn. In the criminal defense area, we cannot keep taking on new cases, provide the constitutionally mandated defense for New Yorkers, and absorb new State cuts on top of $3 million in cuts that we have already sustained in the State and City budgets this year. On the civil side, we have also already suffered $3 million in cuts in the State and City budgets and we are forced to turn away six out of every seven New Yorkers who seek our help, and now with the new State cuts we'll have to turn away more families and individuals who need legal aid to get unemployment and disability benefits, flee from domestic violence, and prevent evictions, foreclosures, and homelessness which is at record levels in New York City."



Lillian Roberts, District Council 37, AFSCME, AFL-CIO: “Governor Paterson’s proposed cuts to Medicaid and school aid strike at the heart of a quality of life that 125,000 members of DC 37 works so hard to protect. How can we ask the Have-nots to get us out of this mess when the Have’s brought us to the brink of disaster? Cuts directed at health services are not the answer. For thousands of New Yorkers these services are a lifeline. These budget cuts will only cause harm and possibly even death. Cuts in schools directed at support staff, damage our communities that are already in pain. Hunger is on the rise. How can anyone endanger school feeding and other programs and the federal funds needed to support them? Instead the state should be making sure these funds are used properly. Budget cuts and layoffs are not the answer. They are a round about way to tax on the poor. They put a strain on lifeline services and a burden on the workers who provide them, while. At the same time they jeopardize their jobs. We need a solution that is fair and equitable. We need economic justice. We need a progressive revenue structure that taxes each according to his ability and gives to each according to his need.”



Judy Wessler, Director of the Commission on the Public's Health System: "Medicaid dollars should be spent to keep Medicaid patients healthy and out of inpatient hospital care. The Governor had begun a program of reforming Medicaid so that care would be available in community-based settings and safety-net providers would be available in medically underserved communities. The Governor must continue, and ensure this reform, before he slashes Medicaid.”



Dr. Barbara Bowen, President of the Professional Staff Congress/CUNY: “Governor Paterson’s budget assumes that New York has to choose between cutting vital public institutions like CUNY and allowing New York to run out of money. But that’s a false choice. There is an alternative, and we’re here to demand that Albany adopt it. New York would have $17 billion in increased revenue this year alone if it simply restored the tax cuts enacted between 1994 and 2005. The State should use that money right now to invest in CUNY; public higher education is the key to revitalizing the State’s economy.”

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NYPIRG STATEMENT ON GOVERNOR PATERSON'S PROPOSED BUDGET

While NYPIRG is still reviewing the Governor's proposed budget, here are some reactions:

ENVIRONMENTAL FUNDING
NYPIRG urges state lawmakers to support the governor's plan to update New York's bottle deposit law and collect from the beverage industry the unclaimed nickel deposits from unreturned bottles and cans. This is one of the few proposed revenue measures that is not a tax. This proposal will generate upwards of $118 million a year for the state while benefiting New York's environment. NYPIRG also urges state law-makers to reject the Governor's cuts to the Environmental Protection Fund.

HIGHER EDUCATION
NYPIRG urges state lawmakers to reject the governor's plan to raise the cost of attending public colleges and universities. Increasing tuition (CUNY $600/SUNY $620) and cutting TAP will unduly burden middle income and independent students. Every dollar the state raises with this tuition hike is one less dollar students will have to spend on books, supplies, housing and transport—all expenses that are on rise. Even worse, 80% of the proposed tuition increases would be siphoned off into the general fund, and won't even be used to restore the $300 million in recent cuts to SUNY and CUNY.

While we are supportive of the governor's plan to provide lower cost student loans, we are disappointed that he has proposed to undermine rather than improve the TAP program by cutting awards for students with several family members in college, grad students, and students who register for 12-14 credit hours (often because of work and family obligations).

LEAD POISONING PREVENTION
NYPIRG urges lawmakers to support the governor's proposed substantial increase in spending to address the childhood lead poisoning epidemic; the budget's commitment to a prevention approach to lead poisoning; and requiring cooperation by state agencies and local governments on lead poisoning.

PRESCRIPTION DRUGS
NYPIRG applauds the governor's plan to eliminate conflicts of interest by pharmaceutical companies giving certain gifts and requiring disclosure of other payments to health providers and pharmacy benefit managers.

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ASAP: Why cut programs when cuts will cost New Yorkers more money?



Cuts to addiction treatment and prevention services proposed today by Governor David Paterson will have the opposite of their desired effect: They will increase New York's deficit instead of reducing it, the New York Association of Alcoholism and Substance Abuse Providers (ASAP) argued today.



"Cutting New York's investment in addiction services makes no more sense than quitting a job to save money," said Chris Wilkins, President of ASAP's Board. "There is clear evidence that saving pennies here costs dollars immediately in increased health care, criminal justice and social services costs – all because people stop getting the cost-effective treatment they need."



"In juvenile justice alone, community-based treatment can save more than $100 million compared to incarceration. New Yorkers want and deserve this kind of common-sense budgeting: steps that cut costs and improve services."



ASAP Executive Director John Coppola praised the Paterson administration's decision to increase the beer tax but said the increase should be higher and revenue should be earmarked for addiction services. Coppola also noted that some proposed funding to strengthen community detox services is a good start but falls short of what is needed.



ASAP said it is pleased that some funding for criminal justice programs and Stop DWI would be shifted from other state agencies to the State Office of Addiction and Substance Abuse Services (OASAS). Addiction advocates support this shifting of resources because commissioners of other state agencies have routinely cut addiction services because they are not considered "core services" in other state agency budgets.



“Addiction is a core issue in almost all social problems. It is a shame to see state agencies cutting their support of addiction services because it is not one of their core services” said Richard Pruss, Public Policy Chair for ASAP. He noted that addiction is a “core” cause of domestic violence, child abuse, crime and so many health and social problems and said: “Treatment and prevention services are core to solving many of these problems. They are core to solving our current fiscal crisis. Now is the time to increase support for addiction services, not to cut them”.