3/9/10: Borrowing to Fill New York's Budget Gap is NOT an Option!

The following statement was released by Brian Sampson, executive director of Unshackle Upstate, in response to state lawmakers considering bonding to help balance the 2010-11budget and reduce the state deficit.

"With the April 1, 2010, budget deadline looming, New York State lawmakers are scrambling to find ways to fill the nearly $10 billion 2010-11 budget deficit. Incredulously, there are now discussions about using state bonds to plug the increasing gap. This recent proposal is simply not an option, period. Under no circumstances should bonding be used to reduce New York's deficit.

Bonding should only be utilized for projects with long-term benefits such as infrastructure, health and safety projects. Our state elected officials need to cut-up their imaginary credit cards and realize they can only spend what they actually have.

Since 2000, New York's budget has increased from $77.5 billion to $134 billion. That's an increase of nearly $60 billion. New York cannot sustain this type of spending. In just the last two years, state spending has increased by 12 percent. Yet lawmakers continue to follow along the same disastrous path. With state spending projected to increase by an additional 7.5 percent over the next five years, and state revenue increasing by only three percent, New York State is on a runaway course to a $65 billion dollar deficit.

The answer is simply, NO. State legislators cannot look to mortgage the futures of our children because they refuse to look at the reality of where our state is going. Reducing spending is the only solution; bonding is not an option."

Read more about Lieutenant Governor Richard Ravitch's plan here and here.