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State Legislature agrees to $2 billion increase over Pataki plan in borrowing for roads, bridges, rejects tuition hikes
By JAMES M. ODATO, Capitol bureau
First published: Thursday, March 24, 2005
ALBANY -- The Legislature agreed to a giant increase in borrowing for roads, bridges and mass transit Wednesday while refusing to increase public college tuitions.
The deals ended the sixth day of legislative conference committee sessions and added to Gov. George Pataki's concerns that the Legislature is spending too much.
"I fear there is going to be spending levels much higher than acceptable and revenue levels much lower than acceptable," Pataki said.
The deals came after public and private wrestling between the Assembly and Senate over differing spending preferences. The chambers compromised as leaders try to figure out how to add $1.55 billion to the governor's proposed $105.2 billion budget.
After a week of debate, lawmakers appeared to have resolved the big transportation funding problem, although committee chairmen Sen. Thomas Libous and Assemblyman David Gantt said details on how to finance the capital plan are still uncertain. Libous was unable to say how much additional borrowing will be part of the plan because of uncertainties on how much revenue will come from other sources.
Lawmakers agreed on a $35.8 billion, five-year program to pay for transportation projects, about $2 billion more than Pataki proposed in January. At the insistence of Senate Republicans, the money would be split evenly between roads and bridges, an upstate concern, and mass transit, generally a New York City issue.
A joint transportation committee received applause from about 200 town and county highway superintendents wearing orange vests who filled the conference room to lobby for more funds for local projects.
The Assembly and Senate also agreed to ask voters to approve a $2.9 billion bond issue to help pay for the projects. Pataki declined to support the plan.
Lawmakers say they will be adding to state-backed debt, but are at least asking for voters to go along with much of it.
The state's debt, now at nearly $47 billion, would grow to $49 billion under Pataki's budget plan. Comptroller Alan Hevesi has warned that debt limits are needed.
"This $2.9 billion is the right kind of debt if its authorized by voters, but it needs to fit into an overall picture of limiting our reliance on debt as we move forward," said Jeffrey Gordon, a spokesman for Hevesi.
Libous would not rule out raising taxes and fees, including some DMV costs that Senate Republicans earlier said were unacceptable. Lawmakers said higher title charges are more likely than an increase in vehicle registration fees.
The transportation budget negotiators said they will work on how bond act proceeds would be spent. In 2000, voters rejected a $3.8 billion bond act, in part because state officials never identified specific projects.
Most voters upstate, including in Albany County, opposed the measure, overcoming support in New York City. Assemblyman Richard Brodsky, a member of the transportation committee, said it will be important for Mayor Michael Bloomberg and other city officials to support the plan during this year's mayoral elections.
Lawmakers also rejected Pataki's plan to raise SUNY and CUNY tuitions and cut Tuition Assistance Program funds for college students. Pataki had proposed a $500 tuition hike for SUNY students and regular annual increases for incoming students.
Meanwhile, behind the scenes, health care lobbyists, lawmakers and Pataki are negotiating agreements that may allow the governor to claim some victories in his fight to lower Medicaid costs.
The parties are inching toward an agreement to raise hospital gross receipt taxes by about .35 percentage points, according to some health industry sources, although the talks are inconclusive. The tax hike, half of what Pataki sought, would raise $90 million in the 2005-2006 fiscal year, according to the sources.
A nursing home tax would increase 1 percentage point to raise $40 million.
Negotiators are also close to agreeing on a preferred drug list that would allow the state to save tens of millions by negotiating cheaper medication costs for Medicaid patients. And, the governor will be able to cut graduate medical school funding, but not as deeply as he desired.
Lawmakers further agreed to $2.5 billion for services and programs for poor and needy families. Local officials, however, were upset that the $600 million for cities and towns was about $200 million short of what they sought.
Assembly Speaker Sheldon Silver and Senate Majority Leader Joseph Bruno said Wednesday's progress was substantial. But Pataki, who has been getting the final say each day with early evening news conferences, criticized the chambers for failing to make important spending decisions, particularly on health care and education.
"The governor has a right to his opinion," Bruno said. "We feel we're doing extremely well."
Silver said the Legislature is moving toward consensus on a new budget before the new fiscal year starts on April 1.
Lawmakers are attempting to break the 20-year string of late budgets. M. Odato can be reached at 454-5083 or by e-mail at jodato@timesunion.com.
