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Albany Times Union

Coalition hopes to halt cuts
Albany-- Pataki, Bruno insist they won't raise taxes to close gap
By ELIZABETH BENJAMIN, Capitol bureau
First published: Friday, January 24, 2003

In an unprecedented effort to get the jump on Gov. George Pataki's budget proposal, some 200 nonprofit, labor, education and religious organizations have banded together to suggest potential solutions for the state's looming multibillion-dollar deficit.
"This is a pre-emptive strike, which is new for us as advocacy organizations," said Elie Ward, executive director of Statewide Youth Advocates. "We recognize this is going to be a difficult year. To face that as early as possible is the best way to handle it."
On Thursday, the coalition called for boosting revenue by temporarily increasing state income tax on wealthy New Yorkers, rather than the deep spending cuts, service reductions and fee hikes that Pataki has intimated will be in the budget he unveils Wednesday. Coalition members also asked that state officials consider closing loopholes that allow corporations to avoid paying their fair share.
The group says the governor's desire to preserve tax cuts and prevent tax increases will result in a budget that unduly affects low-income and working class people who rely heavily on publicly funded services like education, transportation and health care.
"The burden must be shared," said the Rev. Vernon A. Victorson, pastor of First Lutheran Church in Albany, speaking for the New York State Community of Churches. "It cannot be placed disproportionately on those in need."
In a series of pre-budget speeches this week, Pataki has been repeating his distaste for "job-killing" taxes and attempting to prepare New Yorkers for a budget that cuts programs and services across the board.
Speaking to local business leaders Thursday, Senate Majority Leader Joseph Bruno, R-Brunswick, took up the governor's message and insisted that the key to economic recovery is maintaining a strong pro-business climate.
"Common sense, which everyone in government has, tells me that if you punish business... then you are going to curtail their revenue, and the state's revenue," Bruno said at the Albany-Colonie Regional Chamber of Commerce luncheon at the Albany Crowne Plaza. "Taxes will be counterproductive. You can't tax your way out of a huge deficit."
The state faces an estimated $2.5 billion revenue shortfall in the current fiscal year, which ends in March, and another $10 billion to $12 billion deficit in 2003-04.
However, Bruno said that increased fees associated with business should not be ruled out. He insisted that raising costs to do business at the Department of Motor Vehicles or a tuition hike at state colleges and universities aren't new taxes.
The Business Council of New York State has adamantly opposed any type of tax increases, arguing those put in place in the late 1980s and early 1990s prolonged the last recession in New York.
"In our view, Albany has a spending problem, not a revenue problem," said council spokesman Matthew McGuire. "The focus of the debate should be on getting our spending more in line with other states, not on what should be done to sustain this level of spending."
Capitol bureau reporter Erin Duggan contributed to this story.