Senate Republicans Continue Decades Long Tradition of Fiscal Malfeasance

Mar 21, 2010

In a party-line vote, Senate Republicans refuse tough budget choices and deny tax relief for New Yorkers.

Albany, NY – After indulging in decades of out-of-control spending, budgetary gimmicks, and burdensome tax increases on New York families, Senate Republicans showed themselves to be the true “party of no” yesterday when they voted unanimously to reject a tough but fair budget resolution proposed by Senate Majority Conference Leader John Sampson and fellow Democrats.

“Yet again Republicans have shown themselves to be political opportunists unwilling to make hard choices for the good of all New Yorkers,” said Josh Cherwin, New York Senate Dems Executive Director. “Decades of irresponsible spending and unsustainable budgeting practices by Republicans created this mess. Rather than work towards a bipartisan solution to the problems they created, Senator Skelos and his Republican cronies are sitting on the sidelines pointing fingers. As New York families struggle with their own budgets, and make tough choices every day, they expect – and deserve – that their elected officials do the same.”

The Democratic Budget Resolution makes tough but fair choices to reign in state spending while rejecting $1.1 billion in tax increases and fees. The resolution provides more than $500 million in property tax relief by rejecting cuts to the STAR program and adding in $291 million for senior STAR rebate checks.

“Property taxes outside of New York city are 56% above the national average,” said Regina Calcaterra, candidate for Long Island’s first senate district. “Our budget resolution provides real tax relief for New Yorkers struggling under that burden – particularly our seniors. Yesterday Republicans unanimously turned their back on those taxpayers.”

Senator Skelos has been vocal in his objections to the Democratic Budget Resolution, yet the Republican record shows this newfound fiscal conservatism to be nothing more than political posturing during an election year. Such rhetoric might be useful for grabbing headlines, but it does nothing ease the tax burden on New Yorkers or reign in decades of out-of-control spending – accomplishments Skelos and his minions failed to achieve for New Yorkers in all their 44 years in power.

The Republican Record:

Overspending & Cap Violations

• Under Republican rule during the Pataki-Bruno years from FY 1996 to 2008, the state budget grew nearly 100%.
• In 1996, the overall size was $62 billion; by 2008, it was $121 billion.
• Despite talking about spending controls, the Republicans regularly violated their own plan for a “state spending cap”.
• Between 1982 and 2008, they outright violated their plan 24 out of 28 times.

Creating Debt

• Despite a strong economy, the state’s debt load grew dramatically under Republican control, nearly doubling between 1997 and 2008, from $31 to $54 billion.
• This debt stems largely from the Republicans’ refusal to hold public authorities and corporations accountable, which we now do as a result of the Public Authorities Reform Act of 2009.
• Also during this period, the debt load attributable to each and every man, woman and child in New York soared from $1,774.56 in 1997 to $2,675.70.

Debt Service Doubles

• Not only did Republicans turn a blind eye to accruing debt, but they also committed the state to poor loans agreements, resulting in a doubling of the state’s annual debt service: from $3 billion annually in 1997 to $5.8 billion in 2009.
• Debt service is expected to rise even more as the interest rates on the massive 2005 bonds act have since ballooned.

Tens of Billions in One Shots and Sweeps

• Even in times of relative prosperity, Pataki-Bruno resorted to budget gimmickry.
• From 1997 to 2008, Senate Republicans consistently increased the use of one-shots over the recommendations of two Governors.
• Besides overspending and debt, they voted to enact approximately $24.678 BILLION in one-shots and sweeps – money many education and health care programs could rely on now had it not been wasted during a good economy to cover their indulgence.
• In 2005 alone, they enacted $4.2 billion in non-recurring one-shots, and another $918 million in 2004.

Billions in Transportation Bond Debt

• In 2005, the Republicans borrowed $2.9 billion in bonds to close the budget gap, and restructured billions more, paying only the interest for 5 years, and shifting the burden onto taxpayers who now have to pay back the principle.

Property Taxes

• Since 1977, New York has had the highest combined state/ local tax burden in the nation for every year but three.
• New Yorkers pay almost twice the national average for local taxes.
• Combined with state taxes, New Yorkers face the highest state/local tax burden in the country.
• Property taxes for residents outside New York City are 56% above the national average.
• As a percentage of home values, New York is home to 8 of the top 10 counties with the highest property taxes in the nation. And all 8 are in the Upstate areas that are either losing population or experiencing slow population growth.

For More Information

Josh Cherwin
518.462.2867