Paterson and his Budget -- The Long View

by Keith Cooper

From Broader View Weekly, March 13, 2009

It has been interesting to see the way conservative optimism has given way to doomsday pessimism and blatant fear-mongering (as opposed to the disguised fear-mongering of the past few years).

My fellow-columnist has painted a vivid depiction of a mass exodus of taxpayers and business leaders and a bankrupting of New York State’s economy. My hopeful liberal optimism allows a slightly rosier perspective.

It is true that our state’s taxes dwarf those of other states. However, this condition is not unique to Governor Paterson’s administration. For years, smokers have headed North or South to purchase tobacco products at cheaper prices. Drivers near the Pennsylvania border have been able to travel short distances to fill up for less. Businesses have relocated in states with friendlier taxation laws.

That Paterson is unpopular is also undeniably true. His poll numbers show only a quarter of the state’s residents approve of the job he is doing. Of course, his story isn’t much different from other states’ governors who have seen their numbers drop in the face of economic hardship and tough budgetary decisions.

That said, I have my own criticisms of Paterson’s choices. Slashing education funding at a time when a skilled workforce must be built, and when the technological and intellectual needs of the future must be met, worries me greatly. I would prefer an increase in spending for both K-12 schools and higher education, even if it comes with a larger tax burden.

I can understand the motivation behind taxing unhealthy practices like smoking and consumption of large quantities of high-fructose corn syrup. But, like my brother I disagree with this targeted taxation that seems to take aim at the working class, which represents the largest group of consumers of such products. These folks are already bearing the burden of our consumer-driven economy, and are suffering the most from job losses and rising prices. Since I have a penchant for sugary caffeine-rich drinks and downloaded music, I have a personal aversion to taxes attached to such luxuries. However, I can always vote with my feet and purchase a CD or two (it may curb my spending to a responsible level and keep me from those impulse buys that I regret within moments of the download). I also might look back one day and celebrate giving up Pepsi the same way I smile when I see the carton price at Walmart and thank God I crushed out my last butt twenty years ago.

I do find Gordon’s appraisal of relief spending somewhat offensive. At a time when jobless rates are rising and economic conditions find greater numbers in need, he takes the tired old “welfare state” line. It seems ludicrous to believe that increased spending will result in increased welfare rolls, as if public aid will somehow appear favorable to earning a decent living in a secure job. I guess he missed the recent stories of hopefuls camping out to compete with hundreds of applicants for a few dozen fire-fighter jobs, or of the well-attended job fairs in our region. As jobs are created, there will be an eager workforce to fill them, regardless of any perceived incentive to sit back and collect a government check.

Of course, Paterson’s budget isn’t a done deal. Alternative proposals have been offered that may trim a few million from the $121.1 billion in the governor’s plan. I find it interesting that some Republicans in the state legislature who opposed the federal stimulus package have been proposing using those same funds to cover the $14 billion deficit in the expected budget. It seems shortsighted to count on that lump-sum money to shore up the budget when the following year is apt to see a greater shortfall.

I hate to see the STAR rebate program die as much as anyone else does. I hate the thought of paying even more for a twelve-pack of soda. I would hate to give up my iTunes purchases. But these are tough times and I know there will be plenty of sacrifice in the short term and the long term.

Maybe we can’t tax our way out of our problems, just as we can’t drill ourselves into oil independence, but spending the stimulus funding to close the budget gap is just postponing the tax burden. Spending cuts and increased revenue efforts have to intersect in order for the state to function in a fiscally responsible manner. We should raise our voices to protest unfair taxes or to preserve programs that are vital. But we should remember that we will survive this budget and these tough times as sure as we have endured the worst of the winter.