Assemblyman Marc Butler (R-Newport) answered some Evening Telegram questions on this year’s budget.
Q. How many state budget’s have you worked on, and have any been this difficult?
A. I have been through 15 budget negotiations under Governor George Pataki, Governor Eliot Spitzer and Governor David Paterson.
The decisions facing us this year are by far the worst; the only year that could come close to approximating what we face this is 2002, when we faced some serious financial problems in the aftermath of the 9/11 attacks at the World Trade Centers.
Q. What have you learned from other challenging budgets?
A. In the late 90s and into the early 2000s, there was a financial bubble and the revenues were coming very strongly into the state.
The problem is, the state spent that and borrowed more beyond that. This automatically raised the spending for subsequent budgets as well, and also raised expectations among some that the money would continue flowing, so why not implement all these nice programs (at taxpayer expense) to help everyone.
We now know where that led us.
Again, the 9/11 attacks rocked New York and Wall Street, which should have served as a clear warning regarding our dependence on Wall Street revenues. Unfortunately, after a couple of years of correction following the attacks, the old spending habits returned, and when the economy cooled and then went into a slump, it became very difficult to turn off the spending faucet.
Q. What steps have you taken to fix New York’s and the Mohawk Valley’s finances?
A. I have frequently voted against the state budget — or at least portions of it — over the past several years. Many of us recognized that the growth in the budget and spending was unsustainable.
I have returned my mail budget ($34,000) with the hopes that it will be applied to this year’s budget. With 212 members, even returning a portion of that mailing budget would help generate millions of dollars without damaging important programs.
Q. What are your budget priorities and where do they fit in the budget?
A. I have always viewed education, economic development and public safety as priority issues. We must perform a balancing act in putting the budget together, to insure that any cuts we agree to are done fairly.
Our upstate school districts are low-wealth districts and depend heavily on state aid. If cuts are made across the board, we are affected relatively more, because the state aid is such a higher percentage of our schools’ budgets. Compound that with our inability to pay ever-increasing property taxes, and we face a real dilemma on trying to fairly fund our schools. The issue is compounded because, frankly, the school aid formula is so complex.
Q. Describe the budget discussion’s going on in Albany?
A. I believe this year we have a broad agreement that New York simply can not afford any additional tax increases ( or revenue enhancers) and that we have to work with what we have.
When the governor proposes to close parks and historical sites (such as the Herkimer Home), raid the snowmobile fund, or withhold income tax refunds, it’s not enough to say “no” as we all have. The governor then rightfully can ask what we propose as an alternative. In terms of the parks, there may be opportunities for corporate sponsorships, donations to a non-profit friends group to maintain the site, or shifting of other options.
Q. Explain what has been accomplished thus far in this year’s budget process?
A. We have completed a series of budget hearings on various aspects of the budget. As you might expect, the news has not been good. Agency consolidations, cuts, the suspension of valuable programs are all on the table and the subject of discussion.
We will now attempt to reconcile the various revenue forecasts among the various conferences and decide on how much money we believe there will be to work with.
Interestingly, this year the forecasts from both sides of the aisle and from both houses predict lower revenues than the governor. That should be helpful in reaching an agreement, in that typically the legislature predicts a significant amount beyond what the governors have predicted and plan their budget proposal accordingly. That is simply not the case this year.
Q. What economic issues most affect the Mohawk Valley?
A. The issues affecting the Mohawk Valley and the state are the same they have been for years. High taxes, high regulation, energy costs and aging infrastructure hamper our efforts to retain and recruit jobs and business.
In the Valley, we continue to see some promising early signs of high-tech and nanotechnology, development, which is the new directions for us to head.
That having been said, New York continues to enjoy many advantage. We have an excellent educational system and our institutions of higher learning can very well be a catalyst for the next generation of economic development. And perhaps this economic downturn will bring about the long-needed discussions about consolidations, mergers, and shared agreements that will help us all operate more efficiently and effectively.
Q. What will you, the Legislature and governor be working on throughout March?
A. As we move toward our April 1 deadline, we should achieve a revenue consensus, establish joint conference committees, and stake out our priorities for this budget.
I would say that over my tenure in the legislature, we have met our statutory deadline for the budget only three or four times. My belief is that with the current perception of the Legislature and Albany in general, we need to make a concentrated effort to enact a timely budget, so schools and other entities can begin preparing for what will be a difficult year.
