These budgets just continue to grow at double the rate of inflation. We cannot continue at this pace. People simply can no longer afford to liberal policies that have plagued this state for decades. Look what has happened to us, highest this, highest that, yet what the hell is so special about this state? Nothing any more, nothing. This is a government for the elected, by the elected and to screw the people.

The current budget of about $120 billion, with $80 billion of state spending alone, grew by about 8 percent over the year before.

New York’s budget deficit deepens

ALBANY, N.Y. The Spitzer administration on Sunday said that the latest economic forecasts show a growing threat of a national recession and declining tax revenues in New York that will deepen the state’s 2008-09 budget deficit by $384 million.

To fill the projected gap, Spitzer proposes $147 million in lowered state spending in health care. He would also save $237 million in reduced growth in funding for agencies; prepay a pension obligation to cut interest costs; and require tighter management of overtime pay and nonessential services, said Spitzer budget spokesman Jeffrey Gordon.

The proposed budget amendments announced Sunday include a $50 million increased “assessment” to be paid by health insurance companies on top of the $140 million assessment called for in Spitzer’s initial budget presentation in January. Spitzer would also require greater use of generic drugs in the government subsidized pharmaceutical plan for the elderly known as EPIC.

Other cost savings include an anticipated reduction in spending on the Medicaid health care program for the poor and passing on to health insurance companies a $25 million cost for immunization, lead screening and other preventative measures.

He noted that a change in the tax code would provide the health insurers with savings that should offset the added costs.

Hospitals, nursing homes and home care services will also be hit, getting reimbursed less for aid based on inflation, Gordon said.

In addition, $25 million will be “swept” from the state’s Environmental Protection Fund used to buy and preserve land and for a variety of environmental and health programs.

That could rankle environmentalists, who have seen frequent raids of the fund in difficult budget years. The EPF was created as a “lock box” in which funds couldn’t be diverted to other purposes.

These changes would be beyond the reduced growth in spending he already planned for most areas of the state budget to fill the $4.4 billion deficit that was projected in January.

Spitzer released the amendments Sunday to his proposed 2008-09 budget to the Legislature. He promised no tax increase, but he proposed increasing many fees, assessment and closing tax loopholes that businesses contend are simply tax increases. The amendments, which must be made within 21 days of a governor’s January budget presentation, reflect a worsening economy and the tax revenues it provides, Spitzer said Sunday.

Spitzer’s full list of 21-day amendments to his $124 billion spending plan is due by Tuesday. He is expected to release the amendments on Monday.

Spitzer’s new estimate of the deficit puts a tighter squeeze on the Legislature, which already had problems with his proposed budget.

Senate Republicans have said Spitzer’s budget proposal in January spent too little on property tax relief and economic development that would provide tax breaks and other incentives to companies to retain and attract jobs. The Senate GOP has its own plan, with some similar elements to Spitzer’s proposed $1 billion upstate revitalization plan, which would be funded mostly through borrowing.

Assembly Democrats have criticized Spitzer’s plan in their two priorities of health care and education.

Legislative leaders and Spitzer will now try to negotiate a final budget by the April 1 start of the fiscal year. Most years, the Legislature adds about $1 billion to the governor’s budget before it’s adopted.

In January, Spitzer proposed a $124 billion budget, with about $80 billion in state spending. It would increase spending about 5 percent, twice the inflate rate. Spitzer has defended the plan as a reduction in the state’s spending growth over recent years and in line with the 20-year rate of personal income growth, estimated by Spitzer’s budget office at 5.3 percent.

The current budget of about $120 billion, with $80 billion of state spending alone, grew by about 8 percent over the year before.

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