Assemblyman Steve Hawley issued the following news release today on what he says is the state Assembly Majority's use of "tax-and-borrowing gimmicks" to complete the new budget.
“After months of delay and behind-closed-door negotiations, the Assembly Majority finally finished their portion of the 2010-2011 State Budget tonight. Sadly, rather than pass a state budget that would properly close the $9.2 million budget deficit, limit state spending, and ease the burden on taxpayers, this budget instead increases taxes, fees, and
borrowing, while doing little to prevent future budget deficits from occurring.”
“The final assembly budget came to a total of $135.7 billion -- $1.7 billion more than the 2009-2010 budget -- and included $1.45 billion in new taxes and fees, while using vague ‘savings’ plans instead of real cuts. The most notable of which is the $330 million tax hike on clothing sales.
"However, what’s worse is the fact that the completion of this budget essentially came down to fuzzy math and unconventional borrowing that deferred job-creating tax credits and raided contributions to the state pension fund and other state funds.
“Specifically, the Western New York Energy LLC is one of the companies affected the most by this legislation. Under the budget legislation, this business will lose $2 million of their job-creating tax credits from the state.
"Add that to the proposal to collect $100 million in 2010, $970 million in 2011, and $870 million in 2012 on other businesses through the deferral of their job-creating tax credits, and it is clear that (Thursday's) budget legislation will send the wrong message to businesses who are located here and are considering to locate here.
“The Assembly Majority should be investing in businesses to promote job creation and to boost our economy. Instead, they continue to look for quick money grabs regardless of the long-term consequences.
"I voted against this budget legislation July 1 and encourage my colleagues in the Senate to return to Albany and make the difficult decisions by cutting back and doing the right thing for the ridiculously overburdened taxpayers of this state!
"By downsizing government and rewarding hard work ethic we can return our state to the ‘Empire State’ status sooner, rather than later or never.”