The state budget has passed, but to judge by news reports the Governor and State Comptroller have already said mid-year emergency budget cuts will be required. And we can only assume the victims will be the same as always — New York City schools, which will be diverting hundreds of millions of dollars out of the classroom to the retired as a result of the recent pension deal in any event, infrastructure and the poor. Money will be borrowed, and taxes will be increased — but not on the retired, who pay no state taxes. And all this will happen after the election. It’s one thing for me to say it. It’s another for them to say it. I guess they figure they don’t even have to pretend anymore.
And just remember, the State of New York is getting tax revenues from Wall Street bonuses based on 2007 conditions, which were deferred to 2008. Next year there may not be any bonuses, or any profits. Other states, faced with the same problems, can raise taxes and borrow money and STILL have a lower state and local debt and tax burden than NYC faces, and better services to boot. Eliot Spitzer’s proposed budget was a joke, and he left to make amends to his family in the middle of it, which means he elected not to make amends to us.
What we are facing is entirely different than in the past, because we have never been so indebted before. That’s why people are talking about a recession as if it were armageddon — and that’s nationally, where debts and taxes and privileges that cannot be discussed let alone reduced are far greater.
I continue to be amazed that, all things considered, we are doing as well as we are. The Governor has said that taxes paid by the state’s 20 largest taxpayers are down 86% from a year ago. I’m amazed we have done that well.