Is a state gasoline tax hike on tap?
ALBANY — Gov. David A. Paterson, who consistently has railed against raising taxes to solve the state’s fiscal woes, opened the door Tuesday to one possible revenue raiser — gasoline taxes.
The issue came up at the end of an interview with a Syracuse radio station when Paterson was asked about a possible increase in the gasoline tax. The last time the state cut gasoline taxes — in 2006, when the state tax was capped at 8 cents a gallon — retailers grabbed the savings instead of passing them on to consumers, he said.
“That’s something that might be considered,” Paterson said as gas prices continued to fall across the state.
Aides, however, later said no such proposal will be included today in the governor’s proposal to cut $2 billion from the current budget to resolve the state fiscal crisis resulting from the nation’s financial sector meltdown and economic slowdown.
But that idea could be on the table next month when the governor grapples with how to deal with a projected deficit of $12.5 billion for the fiscal year that will begin April 1.
During a public forum in Syracuse, the governor offered no clues about what areas of the budget may be targeted. In response to a question from a reporter about school aid cuts, he agreed that across-the-board reductions are not fair and that the state needs to “make needs assessments when we make the cuts.” He did not elaborate but appeared to signal that wealthier, suburban school districts could bear more pain in the coming cuts than poorer urban and rural systems.
Lawmakers are due back next week to consider his plan, though talk in the Capitol indicates that the State Senate — now ruled by lame-duck Republicans who lost control of the chamber in last week’s elections — will be in no mood to cooperate with Paterson.
“I think Republicans and Democrats have got to recognize how much the public is watching,” Paterson said. “I would think whether you’re lame duck or a growing duck, or whatever, it is that you don’t duck your responsibility.”
The governor has been steadfast in saying all areas of the budget are likely to take a hit when he unveils his ideas to-d ay in Manhattan. He has talked of midyear school aid cuts and reductions for hospitals. He also wants public workers unions to reopen contracts for pay and/or benefit cuts.
“We have to make some sacrifices,” he told reporters in Syracuse.
Nonprofit and other organizations are planning media events today across the state, including Buffalo, to protest possible cuts in social services. Some contend the state should dip into $1.2 billion in reserves and raise taxes on higher-income residents before enacting big cuts in health care, housing and other programs.
Organizations are launching ad campaigns to protest cuts, and demonstrations are likely at the Capitol in the months ahead.
Some are going creative. A group of health care organizations plan to unveil the “tobacco tax ticker,” which will show how much the state loses every second by failing to collect taxes on Indian cigarette sales.
Labor unions, meanwhile, already are engaged in attempts to beat back Paterson’s cut ideas. Richard C. Iannuzzi, president of New York State United Teachers, said Tuesday that Paterson is not being consistent in his budget-balancing plans.
“We’re hearing everything is on the table. But it seems the bulk of the issue here is a collapse on the revenue side, and, given that, the revenue side needs to be on the table,” Iannuzzi said.
Unions and other special interests have called for increasing taxes on wealthy residents.
Paterson and legislative leaders have said they will not raise taxes to close the current $1.5 billion budget gap but have not ruled out increases next year.
It would be difficult not to suggest cutting school aid and Medicaid. Together, the two programs account for more than half the state budget.
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