University at Buffalo - The State University of New York

Published: April 24, 2003

By DONNA LONGENECKER
Reporter Assistant Editor

As most New Yorkers know by now, the state is facing a major budget shortfall of nearly $12 billion, with nearly $2 billion in cuts proposed for the 2003-04 budget. Through a combination of major cuts to K-12 education, higher education and health care, massive borrowing and plans to generate new revenue, Governor Pataki's $90 billion budget "has made several wrong choices," according to New York State Assemblyman Paul A. Tokasz (D-Cheektowaga).

Tokasz was invited to address the Faculty Senate Executive Committee yesterday regarding the state budget process. He told the FSEC that the legislature is working to restore as much as $1.9 billion to the proposed budget, but was quick to point out that if SUNY doesn't raise tuition by at least $1,200, it will have to make up the difference elsewhere, because any restorations to higher education likely would help fund opportunity programs such as UB's Equal Opportunity Program (EOP) and the Tuition Assistance Program (TAP).

While the "details still are being massaged" regarding the dollar amount of restorations, said Tokasz, several things are certain-New Yorkers most likely can expect increases in property and personal income taxes and a possible hike in the state sales tax. The state is likely to take out loans against promised tobacco settlement funds owed to the state and additional revenue from such proposals as the placement of video gambling machines at race tracks to address the fiscal crisis, which is one example of the "creative financing" he said is necessary.

And New York isn't alone in its budget crisis, noted Tokasz. Forty-eight of 50 states are in the same slump.

If major restorations aren't made, said Tokasz, the burden falls back on local governments to raise revenue, which generally favors raising property taxes as a means of shoring up diminishing city, town and village revenues. Tokasz called the property tax regressive "because it isn't based on what you earn," but rather on a figure chosen by the local assessor regarding the value of one's property.

"If we don't find revenues, they're simply going to transfer the cost, particularly for K-12 education and health care to a large extent, to the local governments and local governments raise most of their taxes through property taxes," said Tokasz, a former Buffalo elementary school teacher who holds a master's degree in education.

The current budget proposal slashes $1.4 billion from K-12 education-or close to 10 percent of what the state already spends it. About $400 million in cuts are proposed for higher education, said Tokasz. He hopes that restorations totaling $700 million for K-12, $100 million to $225 million for higher education and about $750 million for health care programs such as Medicaid will be possible.

Restoration talks begin on Monday in Albany, and Tokasz said he was hopeful that the legislature would make progress on remedying budget cuts within the next few weeks.

"The governor was very heavy on cuts; (the budget) wasn't balanced enough in our view in finding revenue," he added. "I'm hoping in this difficult time we can find that additional revenue."

Tokasz repeatedly criticized the governor for being disengaged from the budget process. "How do we pay for this? Let your mind wander," he half-joked.

He called UB a major economic engine, telling the FSEC that the administration needs "to make sure the economic engine doesn't suffer."

Tokasz encouraged those lobbying for higher education in Albany not to wait until the budget proposal is about to be released, but to begin actively meeting with representatives as early as October before details are hammered out.

"One of the mistakes all groups make is that they think the budget process begins on Feb. 15," said Tokasz, adding that lobbyists need to spend more time meeting with legislators during the "off-season" of August through November. "You really need to make those economic arguments earlier."

He praised New York State's record of spending for K-12 education and health care, noting, "he wouldn't change a thing."

"We take care of our elderly better than other states," and compared to other states, New York spends much more on primary and secondary education, Tokasz said.