Governor Pataki will propose major new tax cuts in his State of the State address to the Legislature today, insiders at the Capitol are predicting.
Here's our prediction: The governor will propose new tax cuts that would improve New York's competitive standing, and thus lead to new business growth and jobs; others will say the state can't afford to cut taxes, but can afford to add billions in new spending.
The New York Times has a story by Danny Hakim here.
A day before his final State of the State address, Gov. George E. Pataki said on Tuesday that New York's budget surplus was now projected to be $2 billion, twice previous estimates.
The revelation of the surplus in the state's $106.7 billion budget led Republicans in the State Senate to speculate that the governor would announce new tax cuts in his address on Wednesday afternoon.
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Joseph L. Bruno, the Republican majority leader of the Senate, said tax cuts should be a top priority. "I think he'll propose tax cuts," he said, referring to the governor's coming speech. "We're going to be interested in which tax cuts he proposes, because we feel you've got to focus on property tax cuts."The Senate has proposed major expansion of property-tax rebates for residential property owners. Assembly Speaker Sheldon Silver, meanwhile, told the Times the state should use available dollars to increase spending on schools. Get ready for 'a feeding frenzy': Tom Precious of the Buffalo News reports that lawmakers are already planning how to spend the state's newfound revenue.
...within hours, legislators were eyeing the money to be used for everything from higher education and health care spending to tax cuts for property taxpayers and assistance for elderly people to help them pay for soaring energy bills this winter.More support for tax cuts: The Binghamton Press & Sun-Bulletin has local pre-State of the State commentary.
Calling the annual speech a "blueprint," state Sen. Thomas W. Libous, R-Binghamton, said Pataki's address could give clues to plans down the road. Pataki hinted at the university center at least two years before it was announced, Libous said.
"My hope is with the surplus I believe we have, he'll talk about cutting taxes," he said.Another look: In the Democrat & Chronicle, Joseph Spector reports on the outlook of some Rochester leaders.
...the Rochester region ... is looking to Albany to limit the tax burden, enact new reforms and approve aid for projects and programs.
Last year, the Legislature capped Medicaid costs to local counties, but Monroe County Executive Maggie Brooks said additional changes are needed.
"The cap was a good start, it slows the growth of that program — but it really doesn't reform the program to the level that we need," she said.Many local officials in Rochester, as in other areas, want Albany to pay for various local projects.
Maybe the most pressing of the larger requests comes from the Rochester Rhinos soccer team, which is seeking $15 million to finish its city stadium.
The $25 million stadium, which is set to open this spring, needs the additional aid to add amenities, such as permanent locker rooms and luxury boxes.In Central New York: The Greater Syracuse Chamber of Commerce suggests key ways to improve the state's business climate.
Cutting workers'compensation insurance, energy and health care costs, lowering property taxes and undertaking state-level reforms to Medicaid top the chamber's wish list, said Deb Warner, director of government relations.And: In the Albany Times Union, Jim Odato offers a State-of-the-State preview that mentions the likelihood of new tax cuts. The TU's Liz Benjamin has an overview of the upcoming legislative session which includes this observation:
Election years generally make legislators more predisposed to spend.Yup.