Anglin notes that a new tier is required to trim pension benefits because benefits of existing employees are constitutionally protected. When I first discovered that some years ago, I was amazed. The state constitution actually protects all the layers of fat (such as basing pension benefits on wages plus overtime) of state employees. Then Anglin wrapped up, Paterson went to a news conference and legislators lined up to leave the room.
The New York State Theater Institute, now based in Joe Bruno's old Senate district in Troy, is to be merged with The Egg in Albany (right next to where this presentation is being given). As I recall, NYSTI used to be based at The Egg before some ancient falling out among arts bureaucrats.
Anglin says the budget "does not assume a federal stimulus. ... It would have been speculative to include it." Expect legislators to assume and speculate away, and hope for federal money to reduce Paterson's pain.
The governor has finished a pretty short speech, and handed over to Budget Director Laura Anglin. When Paterson finished, legislators all stood and most applauded for a brief period. I didn't see Tedisco applauding. Everyone is still here, including the governor who is sitting on stage listening to Anglin. They are in front of 12 furled flags, six of them U.S. and six NY state. Several potted plants also bedeck the stage.
Paterson's speech to assembled legislators: He, too, makes a shoe joke, and like many people mispronounces Jim Tedisco's name. He says this is the worst fiscal downturn and crisis since the Great Depression. Describing the past, he says correctly: "We've made too many promises, and unfortunately asked for too few sacrifices." The first applause comes with call for reforming Empire Zones.
Some highlights: A 3.3 percent reduction in school aid, which Budget Division spokesman Jeff Gordon assures me means an actual reduction from last year's levels. Some of it comes from a postponement of the mandate for universal prekindergarten, which the state should just dump permanently. There's also the elimination of STAR rebate checks, which makes sense if combined with a property tax cap, and a new pension Tier 5, which, wonder of wonders, would among other things exclude overtime compensation when calculating pension benefits, "which will prevent 'salary spiking' in an employee's final years of service."
For all the doom and gloom, the governor's press release strikes at least one note of Over The Rainbow optimism: "Governor Paterson requests that the Legislature act on his Executive Budget no later than March 1." That would be a month earlier than the constitutional deadline of April 1, which I believe has been missed every year in recent decades.
The event hasn't started yet at the Empire State Convention Center, although the governor's office has released the contents in a folder and five bound volumes. We've also had the first joke of the day, from a Senate sergeant at arms to some reporters near the front : "All you guys have got to take your shoes off." The reference was to President Bush's unfortunate recent experience at a Baghdad press conference.
Hi Bob!
We're all impressed that you're blogging from the budget presentation. We miss you.
Kathleen
Posted by: Kathleen Moore | December 16, 2008 at 02:10 PM