This Week
  • Jewish Senior Life to remake Brighton campus with Green House residences.

  • The growth of mobile banking is expected to continue, driven by customer demand.

  • Natalie Sinisgalli turned a high-school dream into a studio of her own.

  • GM Charles Samuels aims to keep 13WHAM's lead in the local TV market.

  • Fegional Computer Recycling & Recovery is one of NY's largest electronics recyclers.

  • The RBJ 75 supplement presents a list of the 75 largest private-sector employers.

DiNapoli raises concerns over Cuomo's budget plan

Rochester Business Journal
February 13, 2013

Gov. Andrew Cuomo’s executive budget increases the state’s debt, and is balanced with temporary revenues, uncertain federal aid and possibly overly optimistic economic projections, a report from the state comptroller says.

“New York’s fiscal challenges are significant for the foreseeable future,” Thomas DiNapoli said in a statement Wednesday. “In the face of a challenging economy, this budget appropriately restrains spending.

“However, it includes risks on both the spending and revenue sides of the ledger. It increases our debt burden and relies on temporary actions that will get us through short-term problems but pushes off some hard choices for another day.”

Provisions of Cuomo’s proposed 2013-14 budget should be openly discussed by the state Legislature so taxpayers know how resources are being used, DiNapoli said.

The economic projections include 4.6 percent growth in wages and salaries in 2013, and employment growth of 1.3 percent. Those numbers are more optimistic than some economic forecasts, DiNapoli said.

The budget assumes an increase of 6.6 percent in personal income tax collection, a level that has not been achieved in recent years, he said. It also includes revenues such as $175 million in proceeds from a not-for-profit health insurance company conversion and $133 million from Indian casinos that might not materialize.

A potential loss of federal aid associated with Medicaid funding of services for the developmentally disabled and federal deficit-reduction negotiations are not addressed in the Cuomo budget, DiNapoli said.

The budget includes expanded issuance of debt through public authorities by creating a bond financing program backed by sales-tax revenue, which would increase New York’s dependence on “back-door borrowing” rather than through bond act proposals brought before voters, DiNapoli said.

“At a time when New York’s debt capacity is shrinking rapidly, this budget increases public authority borrowing authorizations by at least $3.3 billion,” he said. “We need more effective debt reform that gives taxpayers a voice in balancing the costs and benefits of any new borrowing.”

In a news conference later Wednesday, Cuomo budget director Robert Megma disputed the report's findings.

(c) 2013 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or email service@rbj.net.


What You're Saying 

There are no comments yet. Be the first to add yours!

Post Your Own Comment

 
Username:
Password:

Not registered? Sign up now!
 

To Do   Text Size
Post CommentPost A Comment eMail Size1
View CommentsView All Comments PrintPrint Size2
ReprintsReprints Size3
  • E-mailed
  • Commented
  • Viewed
RBJ   Google