Paterson unveils specifics of plan to reduce deficit
Published: October 15, 2009, 1:47 pm
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ALBANY — Schools across the state will face nearly $700 million in state aid reductions for the rest of their school year and everyone from health care providers to cities are in line for cuts under a dramatic deficit-reduction plan unveiled this afternoon by Gov. David Paterson.
"We have a $3 billion deficit and we're going to have to close it," Paterson told reporters at the Capitol.
In what would be the first mid-year school aid cut since 1991, the governor's plan calls for limiting the education reductions to 4.5 percent of remaining, undisbursed payments by the state to New York's 700 districts.
"This is a very painful plan, but we will share the burden," Paterson said.
The cuts in education vary greatly across district lines. Paterson proposes cutting $10.5 million, or 2 percent, from the Buffalo Public Schools, while Amherst, Clarence and Williamsville would see state aid cuts of 9 percent apiece. Buffalo, however, gets more than three-quarters of its total budget from Albany, so the per pupil hit is larger even though the overall percentage cutback in state aid under the Paterson plan is lower.
Other cuts called for in Erie County, in dollar terms, include $1 million from Sweet Home, $3 million from Williamsville, $630,000 from East Aurora, $1.7 million from Clarence, $1 million from Grand Island, $2 million from West Seneca, $2.2 million from Kenmore and $1.2 million from Hamburg.
In Niagara County, Niagara Falls schools would see a $1.8 million cut, or 2 percent, while North Tonawanda would lose $1.1 million and Lockport would be cut by $1.3 million.
The city of Buffalo would lose $13.5 million — out of $169 million it was promised back in April from the state — under the Aid to Municipalities program.
College students who get Tuition Assistance Program aid would lose $120 in state financial assistance -- no matter whether they get the base award of $500 or the maximum of $5,000. Community colleges, meanwhile, will also get hit, losing $260 per student in state aid.
Other highlights of the plan to erase a $3 billion deficit include:
•Nearly $500 million in cuts to various health care programs, including Medicaid.
•$67 million in reductions in state aid to localities and $125 million in transportation program cuts.
•A tax amnesty program to generate $250 million.
•$100 million in "sweeps" from off-budget accounts to the general fund.
•A new pension "tier" for new state and local government workers that would have employees pay more toward retirement.
Budget officials said the package also includes $26 million in cuts to the Tuition Assistance Program, which helps students pay for college; they said it will result in current TAP awards being reduced.
The program calls for $3 billion in action this year and $2 billion next year.
The deficit plan now goes to the State Legislature, which is not expected to go along easily with some of the ideas, especially the cut to public schools. Paterson budget officials said the school cuts would be made on a wealth-based formula to ensure poorer districts are not hit as hard.
"I expect I will come under harsh criticism," Paterson said. "We understand how difficult this is, but New York has got to stay in our financial position of stability."
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