By KENNETH BRYNIEN
Even as the economy’s downward spiral begins to slow, tax revenues continue to
decline and budget deficits are growing in virtually every state.
State budget deficits across the country will reach or exceed $215 billion for
the 2009-10 fiscal year, roughly $700 for every man, woman and child in the
country, and current-fiscal-year shortfalls totaling $26 billion have already
opened up in 13 states including New York. Our Legislature will reconvene soon
to deal with a shortfall of $2.1 billion in the current fiscal year.
The state budget cannot withstand more cuts without devastating consequences to
those who rely on public services and to those who provide them. PEF will
continue working to keep our members’ jobs, wages and benefits secure.
We will continue to urge the state to reduce its costly reliance on consultants
to provide services our members can provide for less.
However, although that would represent significant savings, with New York’s
recovery lagging behind the nation’s, much of the state’s stimulus money gone,
and tax revenues declining, increased federal aid will be critical.
As the country works its way out of the economic crisis, we will continue to
advocate for additional federal assistance to help address the fiscal crises the
states are facing and to reduce the need for economy-sapping job and service
cuts at the state and local levels.
Recently, I was invited to a meeting with President Obama’s economic advisors.
They indicated another stimulus program is under consideration. They sought our
comments on the effectiveness of the current stimulus program.
PEF’s message was, and is, that although the national economy shows some
positive signs, states are suffering under crushing deficits and need more help.
That’s what we’re telling our state leaders and it’s what our international
affiliates are telling Congress.
Although I sound like a broken record regarding the state’s fiscal condition and
the challenges facing us, we have achieved other victories. We’ve stopped the
relocation of the state’s food lab and passed bills in the Legislature,
including some that increase accountability in contracting by public
authorities.
Our success on budget issues and the recognition we have achieved statewide and
nationally bode well for success as we face the continuing challenges of the
national economic crisis.
