COMMENTARY | I have the privilege -- or misfortune, depending on your political leanings -- of living in Albany, N.Y., just miles from the state legislature. The battle over the most recent budget was one of austerity. Andrew Cuomo assumed the governorship in January, tackling a $10 billion budget deficit which he promised to close without raising taxes. Although the governor succeeded in his endeavor, some cuts made in the FY 2012 budget will prove troublesome for the state's lawmakers.
Cutting Education
The oft-dysfunctional state legislature passed a $132.5 billion budget before the April 1 deadline, according to the Times Union. Education saw the most devastating cuts, with $1.3 billion in state aid slashed, according to the Westbury Times. School districts will struggle to deal with these cuts as less state aid is coupled with a tax-weary public.
Take the Albany City School District, for example. The state's capital will see an 8.9 percent decrease in school aid in an environment of rising operating costs. The district avoided layoffs due to teacher concessions in the areas of retiree healthcare costs and pay freezes, but eventually teachers will demand increases. Other districts may not be so lucky. A survey by the New York State School Boards Association found that 81 percent of school districts expect to lay off teachers. Fewer teachers means larger class sizes and the perception of a deteriorating educational system.
The state will have to keep a close eye on education this year. The recent passage of a property tax cap by the New York State Assembly and Senate will further strain school districts. In addition, New York State United Teachers is arguably the state's strongest union. New York will have to balance union demands with fiscal austerity, which will prove difficult.
Mess With Medicaid?
The FY 2012 budget also tackled another "third rail" of politics: Medicaid. Ask Congressman Paul Ryan of Wisconsin how proposing reforms to healthcare programs can sink a political ship. The state capped Medicaid spending in 2012 at $15.3 billion, according to Bloomberg. The state will continue to feel the push back from healthcare advocacy groups, who will highlight those most affected by the cuts.
For example, the New York Daily News did a story before the budget was even passed on Michelle Teichman, a 25-year-old cerebral palsy patient. The girl's mother criticized the proposed pain-and-suffering cap of $250,000, pointing out that her daughter could go through $250,000 in one year.
A Quinnipiac poll showed that only 32 percent of New Yorkers support cuts to Medicaid, while 64 percent were opposed. Stories of society's most venerable citizens suffering does not bode well for politicians. Numbers such as these show what the federal government already knows: Americans dislike policies that attack entitlements. New Yorkers are no different.
Trimming the State Fat
Gov. Cuomo came in echoing the calls of past governors for state layoffs. However, he has something past governors lacked: a 64 percent approval rating, according to a Quinnipiac University poll. With this mandate, Cuomo has promised 9,800 worker layoffs if the state couldn't achieve $450 million in savings. With the governor's deadline of July 15 looming, many workers across the state are bracing for the worst. But once again, things are more complicated than they seem.
A Quinnipiac poll also shows that 47 percent of New Yorkers oppose layoffs, instead favoring furloughs and wage freezes. There is always a stigma that surrounds state workers: They are lazy or overpaid. But when it comes down to it, New Yorkers don't want to see people lose jobs. Whatever you think of state workers, they are middle class New Yorkers. When you live in a place like Albany, it is very likely that you know several people who work for the state. If 9,800 workers are laid off, then it will also be likely that you know someone who is unemployed. Cuomo must tread lightly when cutting jobs. The electorate tends to be bipolar. New Yorkers like the idea of cutting the budget deficit without raising taxes, but whether they support layoffs to do so is a more complicated matter.
Like many states, the FY 2012 budget asks New Yorkers to sacrifice. How much New Yorkers are actually willing to give is a question that will linger in the halls of the state capitol.
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