NYS Budget Reactions: Capital District

By Dave Lucas

Albany, NY – A day ahead of deadline, New York adopted a $132.5 billion dollar budget that cuts year-to-year spending for the first time in more than a decade and imposes no major new taxes. In the first of 3 reports from our bureau chiefs, Dave Lucas takes a look at the reaction from the Capital Region

Legislators passed the last 2011-12 budget bill just after 1 a.m. Thursday... Governor Andrew Cuomo released a video address this morning, praising lawmakers for passing the first on-time budget in five years and emphasizing the budget's passage is "the first step on the road to economic recovery." Michael Moran, Director of Communications for the Business Council of New York State, says the completed budget sends a very important message to business leaders. E.J. McMahon, Senior Fellow with the Manhattan Institute's Empire Center for New York State Policy, argues that passing a budget on time after decades of mostly late passages doesn't mean much.

Activists played a role in this year's budget drama, promising a "Wisconsin-type protest." Hundreds of demonstrators gathered inside the Capitol on Wednesday, demanding more school aid, no cuts to health care, and higher taxes on the wealthy. McMahon says that while the protesters got a lot of media attention, he doesn't think they actually stand for the majority of New Yorkers. Some of the activists think the day-long protests were just small battles in what is likely to become a much longer fight.

State Comptroller Tom DiNapoli says addressing a $10 billion deficit will not come without pain: "The state, local governments and school districts must now not only do more with less but do it better as well. All of us in government have to watch tax dollars and monitor spending very closely."

Governor Cuomo still has to deal with labor unions after his threat to lay off 9800 state workers if union leaders don't agree to other savings. Current contracts expire Friday. The unions and the governor's office have been negotiating new contracts.

CSEA did not return calls for comment in time for broadcast: a PEF spokesperson says the Union is going over the budget and "may or may not" issue a statement.