Written by Assemblyman Michael Montesano Friday, 05 March 2010 00:00
New York State Assemblyman Michael A. Montesano (R, I, C – Glen Head) criticized Governor David Paterson for his proposed 2010-2011 Executive Budget’s rosy revenue predictions, which overestimate total tax receipts by $1.35 billion and would deepen an already-staggering two-year budget deficit to $9.05 billion, according to figures from the Minority Ways and Means Office.
In addition, forecasts suggest that the economic recovery already under way nationwide will not begin in New York State until the middle of this year due to a sharp downturn in available tax revenue as well as overspending by Albany. The drop-off in revenue comes despite a $1 billion tax hike passed last year, mostly on personal income. New York State derives 55 percent of its total revenues from personal income tax receipts, according to the Division of Budget.
“Governor Paterson and his appointed budget office may try to paper over our state’s deficit problems, but facts are stubborn things,” said Montesano. “The latest figures suggest that the Empire State’s economy has gone from bad to worse – just as many of my Republican colleagues predicted when they spoke out against a bloated, $134 billion spend-a-thon in 2009 that raised taxes and devastated the private sector. We can never tax our way out of red ink, especially during an economic slowdown.”
The newly-elected assemblyman continued, “The revised $9.05 billion deficit demonstrates that Albany must reduce the size of state government and cap property taxes in order to protect homeowners from negative budgetary effects. We need to get back to supporting small businesses that put people back to work – and get away from the heavy-handed taxes which Albany relies on as its only revenue enhancer.”