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Senator Bruno today made an effort to get the budget negotiation process moving. Assembly Speaker Sheldon Silver was invited to attend the meeting, but refused to participate. |
Assembly, Senate Democrats Do Not Participate in Budget Discussions
Tuesday, May 1, 2001
Members of the General Budget Conference Committee, minus Assembly Speaker Sheldon Silver and other members of the Assembly Democratic Conference, met for the first time today to begin public discussions of the 2001-02 state budget. Senate Minority Leader Martin Connor was also invited to attend but did not participate.
"Both houses have passed budget resolutions and everyone's cards are on the table. There's absolutely no reason to wait any longer to begin budget negotiations," Senate Majority Leader Joseph L. Bruno said. "It's unfortunate that Speaker Silver chose not to attend the conference committee meeting. His refusal to participate in the budget process is a disservice to every New Yorker and is the primary reason why we could break the record for late budgets this year."
Senator Bruno called for the meeting of the General Budget Conference Committee, which was attended by Senators Dean G. Skelos (R, Rockville Centre), Guy Velella (R, Bronx/Westchester), Owen Johnson (R, Babylon) andAssembly Minority Leader John Faso.
Members of the General Budget Conference Committee discussed a budget analysis, prepared by the Senate Finance Committee, which detailed levels of spending and tax cuts proposed in the Senate and Assembly budget resolutions.
The analysis concluded that the Assembly Budget Resolution proposed an increase in spending of almost $2.8 billion this year and almost $8.2 billion in the out years, when fully implemented. The Assembly's fully implemented spending plan is more than three and a half times larger than the Senate budget which proposes a spending increase of $1.1 billion this year and $2.3 billion when fully effective.
The Senate Budget Resolution includes a total of $2.2 billion in tax cuts which is $1.6 billion more than proposed by the Governor. The Assembly proposed just $249 million in tax cuts above the Governor. The recommended tax cuts would further improve the state's economy and mitigate the impact of an economic downturn.
The analysis also included an historical perspective of the Assembly's spending proposals. Since the 1995-96 state fiscal year, the Assembly has proposed first-year general fund spending increase totaling $16 billion. The Senate has proposed first-year general fund spending increase of $6.9 billion over the same time period.
"Had we enacted the Assembly's proposed spending increases over the past seven years we would be facing massive budget deficits instead of record surpluses and we'd be faced with potential cuts in school aid, health care and other important programs," Senator Ronald B. Stafford (R-C, Plattsburgh), Chairman of the Senate Finance Committee, said. "We must enact a prudent and responsible budget to maintain the state's fiscal health now and in the future."
"School districts are planning right now for next year, in fact taxpayers throughout the state will vote on school budgets in two weeks," Senator Skelos said. "By not having a budget in place we are making it very difficult for school districts to plan because they don't know how much school aid they will receive next year. It's imperative that we get the budget process moving and resolve the differences between the budget plans."
"Economic indicators are not promising and we cannot ignore the warning signs about trouble with the economy," Senator Johnson said. "Any downturn in financial markets and the national and state economies translates into less revenue for the state. We have to keep that in mind as we plan this budget."
"The people of this state are depending on us and expecting us to get the job done and we are letting them down," Senator Velella said. "The impact of the budget goes beyond school children and construction workers, it has a tremendous impact on everyone who depends on state services."
During the first quarter of 2001, the Standards and Poors 500 lost 12.1 percent, its fourth straight quarterly decline and its worst decline since the third quarter of 1990. The Nasdaq lost 14.5 percent in March alone, ending the first quarter of 2001 with a 25.5 percent loss.
Also, the volume of Initial Public Offerings (IPOs) was down 66 percent in the first quarter of 2001 compared to the first quarter of 2000. According to the Securities Industry Association, the outlook for the IPO market looks bleak. In addition, consumer confidence indexes posted five consecutive monthly declines before a slight upward move in March.
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