Governor George E. Pataki yesterday delivered his proposal for this year’s state budget, saying he hoped to eliminate the state’s deficit by 2007.

Pataki said that in 2002 and 2003 New York went into recession for the first time since the Great Depression due to the Sept. 11 terrorist attacks and the decreasing activity on Wall Street. According to the proposal, the deficit will be reduced from $4.15 billion to $2.7 billion next year.

‘This budget takes decisive, sensible action – action to achieve the fiscal strength and integrity that will not only erase this year’s spending gap, but close future deficits as well,’ Pataki said in an address.

The governor’s budget focused on what he called ‘four core principles,’ including state spending, tax cuts, and Medicaid – the largest item on this year’s budget.

‘New York’s Medicaid program is the most expensive in the nation. If left unchecked, within the next six years Medicaid costs could actually consume more than half of our entire state budget,’ Pataki said.

Pataki’s proposal calls for a completely state-controlled Medicaid system by 2008. In the meantime, New York City and surrounding counties will receive $577 million for Medicaid.

With a state takeover of Medicaid, Pataki hopes to alleviate the burden from county taxpayers.

‘Shifting the cost of Medicaid from the real property taxpayers in the counties to the state taxpayers without reform is nothing more than an empty promise,’ Pataki said.

A major point of Pataki’s Medicaid plan focused on the personal needs of New York state citizens. The budget promotes a new Access to Home Program that will allow family members to make improvements to their homes and keep elderly loved ones out of nursing facilities.

‘Because more and more seniors can and want to stay in their own homes, the budget also doubles the state’s investment in home services for the elderly,’ Pataki said.

Health Care Efficiency and Affordability Law for New Yorkers is a new program funded by the budget that will provide upgrades for health centers across New York state.

‘We cannot afford to invest more in underutilized facilities. My executive budget creates the Commission on Health Care in the 21st Century to make the difficult recommendations to right-size the health care system,’ Pataki said.

The budget also provides aid for private higher learning institutions. The Higher Education Capital Matching Grant Program will receive $250 million in funds and will in turn provide $150 million in matching grants to both private and public institutions.

Schools under State University of New York will also see the effects of Pataki’s executive budget. The proposal reduces the Higher Education Services Corporation funding by $176,283.

The SUNY system will receive an operating budget of $2.9 billion for the 2005-2006 fiscal year, which is an increase of $183 million over last year.

Published on January 18, 2005 at 12:00 pm