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100 organizations join PEF in opposing
state tax cuts
Group to state leaders: Use budget sense
By SHERRY HALBROOK
PEF is working with the Fiscal Policy Institute (FPI) and more than 100
community, religious, health care and human services organizations in New York
state to oppose some tax cuts proposed by the governor and urge state leaders to
make “better choices.”
The Executive Budget proposes another round of personal income and business tax
cuts that will cost $927 million in SFY 2006-07, $3 billion in 2007-08, $4
billion in 2008-09 and 2009-10, and $4.5 billion in 2010-11.
The tax cuts PEF and the others oppose would primarily benefit large
corporations and the wealthiest New Yorkers.
At a press conference in Albany in late February, the group called on the
Legislature to invest in ordinary working New Yorkers and families.
“Make common-sense choices,” they urged lawmakers, including:
• Restoring funding cuts for health care, higher education and other public
services;
• Maintain the quality of the state’s education system without placing greater
pressure on local property taxes; and
• Begin meeting the educational needs of children throughout the state by
implementing a statewide solution to the state Court of Appeals’ decision in the
Campaign for Fiscal Equity case that calls for more funding for NY City schools.
PEF and the others said by the time the proposed multi-year tax cuts were fully
in effect, they would reduce state revenues by nearly $5 billion annually,
requiring deep service cuts and the depletion of billions from the state’s most
flexible “rainy-day” funds.
“If a $5 billion tax cut package were affordable, it would not have to be phased
in over five years,” said FPI Executive Director Frank Mauro.
PEF President Roger Benson said the state could save half a billion dollars
annually by cutting off the money it’s wasting on private contractors.
The state could save $217 million on information technology services and $127
million on engineering just by doing more of that work in-house, rather than
giving it to private contractors, Benson said. Another $130 million is wasted on
medical, legal and accounting services the state farms out to the private
sector.
“This budget is a double whammy for working families,” Benson said. “It wastes
$500 million on costly corporate consultants and gives tax cuts to the
wealthiest New Yorkers and big corporations that already aren’t paying their
fair share of state taxes.”
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The Communicator April 2006
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