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A SPECIAL SESSION
Last week, Governor Paterson pledged to call lawmakers back to Albany this month to address the state’s twin crises – its looming budget deficit and skyrocketing home heating costs. On the budget front, the governor argued that eroding revenues from Wall Street were driving this year’s budget out of balance and would likely add to an already too large budget deficit for next year. According to the governor, this year’s budget is now $600 million out of balance and he estimated that the budget deficit for next year will grow from $5 billion to $6.4 billion. The governor wants the legislature to return on August 19th to work with him to cut $1.2 billion from these deficits. The governor pledged to cut $600 million from state spending through his administrative power and urged the legislature to cut $600 million more. The governor wants lawmakers to return because he believes that the situation will certainly get worse, much worse, and that actions taken now will keep the situation from getting out of control. It is questionable whether the governor can convince the legislature to enact painful budget cuts months before the election, but what is without question is that by taking his message directly to the people, he has strengthened his hand. The typical Albany game is one that only insiders play – one played extremely well by lobbyists and their clients – and a reasonable argument can be made that the state’s budget woes are exacerbated by this insider game. Taking the case directly to the public can help create the climate in which he can trump the power of Albany’s political elite. But the governor must be careful. If he “oversells” his effort by significantly distorting the numbers in order to get the public’s attention, he may harm the cause he seeks to advance. If he plays it straight and his figures are borne out, he will be able to pressure lawmakers into action. In order to beat the money of Albany’s political heavyweights, he must organize the power of the voters. Yet his delicate balancing act is even more treacherous. When the economy sours not only do revenues fall, but the needs of the people grow. The governor made that clear when he coupled his call for a special session on the state’s finances with a call for additional spending to help New Yorkers afford this winter’s home heating costs. According to a recent study, New Yorkers can expect to pay $720 more to heat their homes than they did last year – a 25 percent hike. The average cost of home heating and natural gas has nearly doubled in price since last year. For many, those increases will cause extreme hardship that may even threaten their health. There is a real danger that some New Yorkers may freeze unless something is done. Others may make dangerous choices to heat their homes and stay warm that may lead to disaster. In his comments, the governor acknowledged that the state will have to spend more – even though he’s trying to cut costs. The money for this additional spending will have to come from somewhere. The Assembly approved legislation to pay for additional spending on home heating subsidies by taxing oil companies’ excess profits. Given the report last week that the oil companies enjoyed record profits (ExxonMobil reported a 33 percent increase in profits, $11.5 billion in the second quarter alone), it seems reasonable for government to look to those companies for the money to keep low and middle income New Yorkers warm this winter. But the governor must ensure that this money is well spent. The Assembly legislation called for additional spending on conservation programs as well as enhanced subsidies for those who need help. Beefing up conservation programs make sense, after all if the state is going to help pay for home heating costs it must make sure that the money is used efficiently. And curbing home heating costs helps to reduce greenhouse gas emissions – a policy “win-win.” When lawmakers return, addressing the public’s needs means not only focusing on the state’s balance sheet, but making sure that those who need help get it. That’s all for now. I’ll be keeping an eye on the Capitol and will talk to you again next week. |
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