Governor’s Executive Budget Released
Governor’s Executive Budget Released
In December, the Governor released the Executive Budget a full month earlier than usual in an attempt to address the growing deficit in New York State. According to projections, the deficit gap to be addressed in the 2009-2010 Budget has ballooned to $12.5 billion. While deep cuts were made in virtually every sector, highways were particularly hard hit.
CHIPs
The Governor’s budget reduced CHIPs funding to its lowest level in over 14 years. The proposed funding level of $250.9 million represents a 31 percent reduction of $112 million below last year’s appropriation of $363 million. CHIP’s was scheduled to receive $313 million this fiscal year, so the Governor sees it as a $58.8 million or a 20 percent reduction. Taking into account the inflation rate of 22 percent this year for highway construction materials, Local Roads would get the equivalent of a 50 percent cut!
Every effort must be made to educate the Legislature about the disproportionate cut Local Roads are getting vs. local transit which saw a 4.4 percent cut. Drivers on Local Roads pay nearly 50 percent of the more than $2.3 billion the state collects annually in highway user fees and taxes. Under this proposal, Local Roads receive an unacceptable 10.9 percent!
New Fees and Taxes
In addition, local drivers will be paying more should this budget pass:
· Increase vehicle registration fees by 25 percent ($60.5 million)
· Increasing driver license fees from $50 to $62.50 ($21.9 million)
· Increase auto rental tax from 5 percent to 6 percent ($8 million)
· Increase fees for trucking permit renewals from $4 to $5 ($4.6 million)
· Lift the cap on the gas tax ($225 million @$3. Per gallon in general fund)
Consolidation
The Governor’s proposed budget also contains recommendations from the Commission on Local Government Efficiency and Competitiveness. Sections 26 through 28 amend the Town Law to allow a town board to convert the positions of town clerk, town highway superintendent, and town receiver of taxes and assessments from elected to appointed, subject to permissive referendum.
A permissive referendum is a vote by the town board which passes unless opposed by a petition submitted to the town clerk or a resolution adopted by the town board within 30 days. If opposed, then the referendum goes to a special election. Under current law, a town board can convert these positions from appointed to elected, subject to permissive referendum, but a mandatory referendum to the voters is required to convert from elected to appointed.
It also amends town law to allow first class towns to consolidate the positions of town receiver of taxes and assessments and the town clerk. Under current law, towns of the second class already have this power. It also amends the town law to allow a town board to consolidate the positions of public works commissioner and town highway superintendent, subject to permissive referendum.
Albany Politics Hinders Dialogue
Some members have asked what became of the possible press conference. The challenge has been determining who the sponsor might be from the Senate for any bill the Association might propose. In the October election, the Democrats won a majority in the Senate (32-30) for the first time in decades. The situation became more complicated when three Democrats from New York City threatened to join the Republicans if they were not granted better leadership opportunities. So even though the Democrats won the election, the Republicans were given an opportunity to retain the majority (29-33). The Democrats at one point struck a deal which has since unraveled. As a result, it is very hard to define who the leaders are in the Senate right now.
Meet with Your Representatives
The best approach in the meantime is for everyone to meet with your representatives at home. Also, please be sure to reserve the date for our 2009 Advocacy Day—scheduled March 10-11, 2009.