60.0°,
Mostly Cloudy What’s with the numbers?
On Nov. 10, in the course of a radio interview, Gov. Andrew Cuomo remarked “that his sky-high poll numbers are less about him personally and more about the renewed pride New Yorkers are taking in state government since he took office.” He also commented that, “I don’t know people who don’t say, boy, the government is working better now.”
Obviously, the governor is indulging in a bit of exuberance in proclaiming both “renewed pride” and improved efficiency in state government, an exercise of relativism, at best.
The governor also noted that the good vibes he expressed do not extend to the state’s finances. “I don’t know anyone who doesn’t say the numbers are worrisome and doesn’t say the numbers are dropping off rapidly.” These convoluted quotes are straining my word processing editing software!
So, what’s the problem!? The National Governor’s Association and the National Association of State Budget Officers (NASBO) just released a report that captures “discretionary spending of revenues derived from general sources which have not been earmarked for other purposes.” The four major components identified are Medicaid, elementary and secondary education, higher education and transportation.
Medicaid spending alone siphons off 23.6 percent of state budget allocations, a reflection of escalating enrollment, higher health care costs, the loss of additional federal funds associated with the Recovery Act and the implementation of the Affordable Care Act.
In my last column, I mentioned that our own budget director, Robert Megna also issued a statement identifying both current and future shortfalls. How worrisome? Consider the following. The DOB estimates that New York’s spending will increase by $1.6 billion in fiscal year 2012; and, there is also ample evidence that previously set revenue collection forecasts will not be met.
With a new budget due on Jan.18, the governor mentioned that further pension reform, agency consolidation, the redrawing of legislative district lines, a possible push to legalize gambling and potentially tax reform, promises to dominate the upcoming year.
