ALBANY— Based on initial information regarding the budget now being finalized by Governor Paterson and the State Legislature, the FY 2009 budget would appear to be a lost opportunity for New York to move toward much needed budget discipline. Additionally, The Business Council is concerned that the spending increases and new taxes and fees included in this budget have the potential to put our state at a competitive disadvantage at a time when our local economy especially Upstate can ill afford further obstacles.
While other states have responded to the challenges of a stagnant national economy with significantly reduced spending, New York instead is increasing spending in the coming fiscal year at a rate much higher than inflation. Worse yet, New York businesses and ultimately, New York consumers are now going to be asked to pay for these increases with an estimated $1 billion in new taxes and fees. And lets be clearregardless of whether these new revenues are ultimately characterized as fees, taxes or loopholes, they are increases that will no doubt be passed on to small business owners, homeowners and consumers.
The Business Council continues to believe that for our state to thrive, we need to responsibly balance spending with revenues and create an economic environment here in New York that invites investment, innovation and job growth. And while we understand that this years budget process has taken place within the context of many unforeseen and unprecedented difficulties, it is hard not to look at the FY 2009 budget as a missed opportunity for New York to change course and get back on the right fiscal track.