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Governor
George Pataki today emphatically reaffirmed his commitment
to rejecting a state budget that increases spending and requires
new tax increases, saying he would veto such a plan if necessary.
The
Governor issued a 1,144-word statement describing a legislative
budget plan that the Governor called "fiscally irresponsible."
"The
Legislature's plan would require almost $7 billion in tax
increases, use of fiscal gimmicks that damage the state's
credit rating and create multi-billion dollar fiscal gaps
next year and beyond-while perpetuating a fiscal crisis we
have the ability to put behind us through bold action."
The
Governor, apparently referring to a possible Legislative attempt
to override his veto, also issued a stern warning to Legislators.
"I
will fight to ensure than any legislator, Democrat or Republican,
Assembly member or Senator, will be held accountable by the
people for their choice," the statement said.
The
statement recalled the state's experiences in 1995 and 1996,
when Governor Pataki and the state Legislature successfully
dealt with multi-billion dollar deficits by making "the tough
choices that laid the foundation for economic growth and record
investments in health care, education and the environment."
This
year, facing a fiscal and economic challenge that is similar
but "even more daunting," New York must again show the courage,
leadership, and restraint "to balance the state budget without
gimmicks or taxes, and put the fiscal crisis behind us, grow
our economy and continue our investments in education, health
care and the environment."
The
statement added: "We have done it before. We can do it again."
The
Governor said the Legislature's plan would:
- Increase
spending this year by more than $2.3 billion, more than
the widely reported $1.9 billion.
- Roll
hundreds of millions of dollars of added spending from this
fiscal year into the next.
- Fail
to deal with $550 million of additional pension costs over
this year and the next.
- Ignore
approximately $500 million in revenue losses that have occurred
since the Governor unveiled his Executive Budget.
- Put
the state's financial plan seriously out of balance this
year and drive some $3.5 billion in additional spending
for next year.
- Increase
the 2004-05 "out-year" gap to more than $4 billion, with
an additional shortfall of more than $5 billion in the following
year-even if tax increases reportedly under discussion in
the Legislature are enacted.
Balancing
this budget this year and next year would require an increase
in taxes of nearly $7 billion - "resulting in a tax increase
to the average taxpaying New York family of nearly $2,000,"
the Governor said.
The
Governor also criticized the Legislative budget plan for adding
$200 million in pork-barrel spending, rejecting government
reforms such as Wicks Law reform and tort reform, cutting
SUNY and CUNY operating support, and eliminating funding for
new charter schools for children in New York's urban centers.
If
this plan becomes law, the Governor said, New Yorkers will
face massive tax increases, continued financial crisis, slower
economic growth, fewer jobs, and a worsened credit rating.
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