One of 50 Mini-Hoovers?

Governor Paterson's apparent commitment to Hooverism apparently remains intact:

The governor’s office emphasized that any additional dollars from the feds would not be used to replace the $15.4 billion in proposed cuts and tax and fee hikes outlined in his executive budget. From Paterson spokeswoman Erin Duggan:

The economic recovery plan being considered by the Obama Administration will go far in helping New York make critical investments in infrastructure and aid the state and working families during this economic crisis. The funds would advance projects that would otherwise not have the funding to proceed. The plan does not, however, lessen the state’s need to rein in its own spending and put its fiscal house in order. The 2009-2010 budget must still bridge the current deficit and position the state to close out-year deficits of at least $15 billion annually.

It still looks like this to me:

• fewer social supports,
• fewer state workers doing more with less (as if that will make government appear more competent),
• scads of higher taxettes, and
• an income tax structure continuing to resemble a Steve Forbes dream come true.
  
  
  

Paul Krugman Nailed It Today

Or so I think. The title, Fifty Herbert Hoovers, summarizes the case as it moves quickly from indictment --

No modern American president would repeat the fiscal mistake of 1932, in which the federal government tried to balance its budget in the face of a severe recession. The Obama administration will put deficit concerns on hold while it fights the economic crisis.

to conviction --

But even as Washington tries to rescue the economy, the nation will be reeling from the actions of 50 Herbert Hoovers — state governors who are slashing spending in a time of recession, often at the expense both of their most vulnerable constituents and of the nation’s economic future.

This column is well worth reading for energizing our messages to Governor Paterson that pulling in your belt is a bad idea when said belt is draped around your neck. Check it out.

Maybe Medicaid

From yesterday's NY Times:

In what would be a major boost to Gov. David A. Paterson’s efforts to close the largest deficit in state history, New York could gain as much as $5 billion in extra Medicaid financing as part of the stimulus package being drawn up by Congressional leaders and President-elect Barack Obama, Senator Charles E. Schumer said on Sunday.

The $5 billion would represent roughly one-third of the combined budget gap that Mr. Paterson must close for the balance of the fiscal year that ends on March 31 and the following fiscal year. Mr. Schumer, who is a lead negotiator of the package, said that the program as currently drafted would provide states with a total of $80 billion to $100 billion in additional help for Medicaid, apportioned according to existing formulas.

Keep fingers crossed. Medicaid's quickly becoming a shadow of its former self, yet it is (for better or worse) the lifeblood of most hospitals and nursing homes.

Education Advocates React to Governor's Budget

When did observations about the priveleges of class get reframed as "class warfare?" No doubt there are those who would use the headline -- Educating Our Children vs. Protecting the Wealthy -- e-mailed yesterday by The Alliance for Quality Education (AQE), the Campaign for Fiscal Equity (CFE), Citizen Action of New York (CANY), the New York Immigration Coalition, New York City Coalition for Educational Justice, Education Voters and Advocates for Children of New York, as just that.

But the headline makes a valid point. And it's an observation, not an attack. The groups characterized Governor Paterson's budget proposal as

unfair and unreasonable. The Governor’s budget cuts committed education funding by more than $2.5 billion. The Governor’s budget would deliver $698 million less in funding next school year than in the current year, but as the Governor’s own budget asserts the actual cut in committed school funding that will be used to close the state’s deficit is $2.5 billion.

[They] are calling for a balanced approach to closing the budget with options that include upwards of $5 billion in new revenue by increasing taxes on New Yorkers who earn at least $250,000 annually. The school aid cuts contained in the Governor’s proposal undermine the state’s constitutional obligation to substantially increase funding in under-funded and high needs school districts as a result of the Campaign for Fiscal Equity lawsuit. The $2.5 billion proposed reduction in committed funding represents the largest proposed school aid cut in the history of the state.

Governor Paterson Releases Budget (ouch) Proposal

Here's the Very Quick, Down and Dirty on Governor Paterson's Budget Proposals --

Losses we care about particularly:

• Public schools, especially high needs schools, whose foundation aid per the CFE decision would be would be spread out over eight years instead of four.
• Hospitals and nursing homes.
• Property owners who depended upon STAR to reduce their property tax bills. No more STAR. For New York City residents, no more enhanced NYC personal income tax credit.

Not being beaten down (again) this year:

• Public assistance recipients, offered a grant increase for the first time since 1990.

Revenue would come from, among other things (see Governor's Briefing Book here):

• 88 new or increased fees
• expanding the bottle bill
• reforming the Empire Zone Program
• allowing the sale of wine in grocery stores
• expanding Quick Draw and video lottery terminal operations
• 18 percent sales tax on non-diet soft drinks
• eliminating sales tax exemption on clothing and footwear under $110
• taxing satellite tv/radio
• taxing barbering, massages, hair salons
• taxing digital music
• increasing assessment on utility companies
  

GUESS WHO WON'T SEE THEIR TAXES GO UP! GIVE UP?

There is no proposal to adjust income tax rates. So a single mother whose adjusted gross income is $20,000 a year would pay state income tax rates at the same percentage (6.85%) as all those Wall Street tycoons who piloted the economy into a freefall but leapt safely with their golden parachutes.

There's work to be done.

Suspend Welfare Time Limits

This email is from Legal Momentum. Time limits always struck me as a terrible idea, springing from a terrible kink in the soul:

Join us in asking Congress to suspend time limits in the Temporary Assistance to Needy Families (TANF) program as part of the economic stimulus legislation currently under consideration. Cutting families off TANF, the national assistance program for impoverished families with children, at a time of high and rising unemployment violates fundamental social justice and human rights principles and will further strain other safety net resources already taxed to the breaking point (including homeless shelter,s and soup kitchens).

Congress rightly recognizes that jobless workers need the safeguard of extended unemployment insurance benefits. So too, do TANF recipients at risk of losing their benefits at this tenuous economic moment, need to continue to receive these benefits.

In difficult economic times, the poor are often hit the hardest, and this will be especially true without increased funding for education and job training. In fact, according to the Center on Budget and Policy Priorities, food stamp caseloads have increased dramatically in recent months. The Center also projects that the number of poor children could increase by between 2.6 and 3.3 million as a result of the recession.

Write to your senators and representative urging them to remember the most impoverished families in the economic stimulus package by suspending the time limit on eligibility for TANF benefits for at least two years or until the economy has fully recovered.

Time is of the essence. Congress will be acting very shortly on the economic stimulus package. Act now by submitting an e-mail to your legislators.

CLICK HERE TO WRITE TO CONGRESS

Thank you for your support.

Sincerely,

Irasema Garza
President

Founded in 1970 as the NOW Legal Defense and Education Fund, Legal Momentum is the nation's oldest legal advocacy organization dedicated to advancing the rights of women and girls.

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