Budget as good as it gets
By SHERRY HALBROOK
PEF had few complaints about the 2007-08 state Executive Budget proposed by Gov.
Eliot Spitzer January 31. And the actual budget signed into law April 9 is even
better for PEF members.
“PEF achieved nearly all of its priorities in the enacted budget,” said PEF
President Ken Brynien.
He thanked PEF leaders and members “particularly those in agencies that were
threatened” and PEF staff for helping PEF to achieve “overwhelming success in
achieving our budget priorities.”
According to PEF’s top fiscal analyst, Tom Cetrino, “the enacted budget contains
funding for almost all the 2,468 positions proposed in the Executive Budget.”
While the funding for the total number of new positions proposed in the
Executive Budget is still there, some of it shifted within or between agencies.
Ultimately, fewer new positions were funded for the state Department of
Education and the Office of Mental Health, but more were added for the
Department of Correctional Services, and the Division of Alcohol Beverage
Control. And funding for new positions at the Health Department shifted from
adding early intervention staff to beefing up enforcement of health care
standards.
The union’s top issues in the final budget battles were addressed in varying
degrees. They include:
• Department of Agriculture and Markets — An effort by the Senate to add
language, that would have required the department’s Food Lab to move from Albany
to Geneva, was rejected.
• Office of Children and Family Services — Part of the funding PEF sought was
restored. Money was added to keep the Great Valley and Gloversville facilities
open. The governor’s proposal to close the Mt. Vernon, and Brooklyn group homes
October 1 was allowed to stand, over PEF’s objections. And the lawmakers added
funding to double the governor’s proposal to add 18 mental health staff at youth
facilities.
• Department of Civil Service — Funding was restored for 30 positions, as PEF
recommended.
• Department of Correctional Services — The proposed new Commission on Prison
Capacity, which PEF opposed, was rejected.
• Department of Economic Development — PEF was largely successful in opposing a
move by the Legislature to add $17.4 million for the Foundation for Science,
Technology, and Innovation. The final budget adds $5.35 million including only
$1 million for Regional Partnerships. PEF opposes expansion of foundation
programs that would duplicate DED services. PEF advocates consolidating the
programs and staffing in DED.
• Health Department — Creation of a new public benefit corporation to administer
the new Stem Cell Innovation Fund was rejected, as recommended by PEF. The fund
will be administered by a new board within the department and chaired by the
health commissioner.
• Revenue measures — As PEF has been urging for years, the state tax law was
amended to close four major corporate tax loopholes. This will raise $405
million in SFY2007-08. However, the corporate franchise tax rate was cut across
the board and other new tax cuts will benefit manufacturers. Those cuts will
reduce state revenues by a total of $150 million. The estimated net revenue gain
for the state from these changes is $255 million.
• Office for Technology — An effort by the Senate to add language, that would
have required the new consolidated data center to be located in Utica, was
rejected. And PEF has a obtained letter of clarification from the state Division
of Budget saying the $5.1 million for interim data center capacity will not be
used to relocate current data centers, which are in the Capital District.
• Transportation Department — The single audit program, which PEF opposes, was
not made permanent, but it was extended for one year.
Brynien and Cetrino cautioned that some of these budget issues may not be fully
resolved. The governor and Legislature are still negotiating an extra $1 billion
in capital spending as well as the PEF-supported Bigger, Better Bottle Bill.
“Even though we were successful in keeping the language out of the enacted
budget that would have required the Agriculture and Markets Food Lab to be
located in Geneva, and the new consolidated data center to be located in Utica,
this does not guarantee these moves will not occur,” Brynien said. “The governor
still has the discretion to approve these moves and PEF members must continue
their advocacy to keep these facilities in the Capital District.
The
Communicator May 2007
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