Pataki
eyes budget cuts
 By SHERRY
HALBROOK
While Gov. George Pataki tried to put a bright face on
his January 8 State of the State address to the
Legislature, he had to acknowledge a $2 billion budget
shortfall this fiscal year, and a much bigger gap looming
for fiscal 2003-04.
Pataki said he wants to reduce government spending to
deal with state budget problems.
He proposed spending less in every area of the budget but
public security.
“While seeking to avoid layoffs, we will work with
our public-employee unions to further reduce the size of
the state workforce and make government the most
efficient it can be,” Pataki said. The governor also
said he would not delay the tax cuts already scheduled,
and planned to add new, targeted tax incentives.
Invest in families
“We appreciate the governor’s willingness to
work with us to try to avoid layoffs,” said PEF
President Roger Benson. “We will urge him to rethink
his budget plans and to take a balanced approach to the
fiscal crisis that includes raising additional tax
revenue by closing corporate tax loopholes, and
implementing a temporary tax surcharge on the wealthiest
New Yorkers and most profitable businesses.
“We should invest in New York families to build our
economy, instead of making service cuts that hurt people
and the economy,” Benson continued.
“Since President George W. Bush is pushing through
federal tax cuts that will provide huge benefits for the
wealthy, New York state could temporarily impose a small
state income tax surcharge on its upper income taxpayers.
They would still see a substantial net decrease in their
combined state and federal taxes,” Benson said.
PEF, the state AFL-CIO and the Fiscal Policy Institute
support enactment of a temporary, 0.7 percent surcharge
on the portion of taxable incomes above $100,000, and
another 1.4 percent surcharge on the portions of taxable
incomes above $200,000. That surcharge would only cost 9
cents out of the federal tax-cut windfall dollar.
 Close the loopholes
To close tax loopholes for corporations and the wealthy,
PEF suggests New York require “combined
reporting” to prevent multi-state and multi-national
corporations from using transfer pricing to avoid
taxation.
PEF also advocates adoption of a new “alternate
minimum tax” similar to New Jersey’s Alternate
Minimum Assessment — a low rate tax, on either gross
profits of more than $ 1 million or gross revenues over
$2 million, for corporations with gross profits of more
than $1 million.
“These are just a few of many positive ways the
state could address its budget gap, without resorting to
the job cuts that only exacerbate the serious staffing
shortages that plague so many state agencies
already,” Benson said.
Parole, SED early targets
The governor also identified two areas of state service
marked for budget cuts.
He painted the first budget bull’s eye on the state
Division of Parole, once again proposing to “abolish
parole for all convicted felons” — a move the
Legislature has nixed before.
“I strongly urge the governor to move cautiously in
abolishing parole for all convicted felons,” Benson
said. “We oppose any change that would remove the
incentives for inmates to rehabilitate themselves in
prison.”
And Pataki proposed shifting testing and licensing for
acupuncture, massage therapy and nearly 40 other
unrelated professions from the state Education Department
to the NYS Department of State.
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COMMUNICATOR HOMEPAGE
Inside This Issue:
Features
Ad blitz aims to save jobs,
services
Pataki eyes budget cuts
ERI savings slim pickings
for state
Bill outlaws discrimination
is now law
Leaders open PS&T
contract talks
PEF honors its Ground Zero
heroes
Departments
President's Message: Budget
balancing act
You Said It: Member's
letters this month
Health & Safety:
Smallpox vaccine concerns
Member
Mobilization:Organization is key
Nurses' Station: Lobby Day
plans for May
Health Notes: Empire Plan
number reaches all
Retirees In Action: Losing
ground financially
PEF Membership Benefits
Program & Travel Corp
Union Matters
Worker's Rights
Reg. 8 brings holiday cheer
State promises Rx for
docs’ pension-credit snafu
They got the 'write stuff':
• Furlani • Wilcox
AED training provides
statewide life support
PEF, Black Caucus plan
receptions
Apply May 1 for Jean DeBow
scholarship
PEF magazine, TV ad win big
2003 Election Rules Dates,
Rules, Requirements
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