Local officials sound off on budget

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January 19, 2010

Medicaid, tourism, cigarette tax proposals cause concern

Staff Reports The Journal-Register Tue Jan 19, 2010, 07:52 PM EST

Gov. Paterson released his proposed $134 billion budget Tuesday and invoked reactions from Orleans County officials.

Chuck Nesbitt, budget officer for the County Legislature, had mixed feelings on the budget.

“There are some encouraging things in the state budget as proposed by the governor,” he said.

One of those things, Nesbitt said, is a four-year moratorium on all unfunded mandates affecting local governments. During this four-year period, the governor would work with the State Legislature to secure approval of a constitutional amendment that protects localities from unfunded mandates.

The governor also left the Medicaid cap in place, which Nesbitt said is essential, explaining that removal of the cap would bankrupt most of the counties in the state.

However, Nesbitt is concerned about some of the ways financing will being done, as the governor anticipates raising $218 million through a cigarette tax and $465 million through a soft drinks tax.

Regarding the impact on the county, Nesbitt explained that some reductions have been proposed to tourism, which the Legislature will have to be cognizant of.

“Fortunately, the cuts have been made in a way that the legislature can react,” he said.

Congressman Chris Lee, R-26th, shared his thoughts on the proposed budget.

“It is long past due for Albany to start focusing on reducing spending and shrinking shortfalls,” he said. “New York state cannot continue to add new taxes and fees on the backs of overburdened Western New York taxpayers, which this budget does.”

Assemblyman Steve Hawley, R,I,C-139th, referred to the governor’s proposed budget as a “mixed bag.”

“I was pleased to hear the governor call for a moratorium on land acquisition,” he said. “Yet, raiding $1 million from the snowmobile fund to balance the budget is an unacceptable infringement on upstate sportsmen. It was unacceptable last year when the governor proposed it, and it’s unacceptable this year.

“In regard to Medicaid reform, I once again feel the governor stopped short of what’s necessary,” he continued.” If we have the courage to purge corruption from the system, I think we need to try to recover $3 or $3.5 billion out of the $5 billion total Medicaid Fraud, not the mere $1.1 billion the governor is proposing.”

Sen. George Maziarz, R-62nd, also chimed in on the proposed budget.

He said the governor is asking the Legislature to approve a record-high level of spending. “I cannot vote to do that,” he said. “Only in Albany can the need to solve a problem be so apparent, and yet the ‘solution’ be so disappointing.’”

“The budget makes many extremely poor choices,” he continued. “It raises taxes and fees by nearly $1 billion dollars, even though just a few months ago the governor said ‘no new taxes next year.’ It relies heavily on the collection of taxes from Native Americans who sell cigarettes to non-Native Americans, even though no one expects his administration to have the means or the mettle to follow through on it. It makes substantial cuts to health care and education, two vital areas that my constituents want to protect above all other non-essential areas.

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