While state Sen. Catharine Young thinks a proposal by Lt. Gov. Richard Ravitch made this week for getting New York's financial woes under control could be "a recipe for disaster," state Assemblyman Bill Parment said he has mixed feelings on the ideas.
Ravitch's plan would require balanced budgets through the fiscal year. He proposes borrowing up to $2 billion a year for the next three years and would like to see an independent financial review board created that could empower a governor to make spending cuts to balance budgets without legislative approval. Legislators would need to approve Ravitch's proposal.
It may be difficult to get Sen. Young's vote, however.
"While I agree with some elements of the Ravitch plan, such as changing the state's fiscal year and putting together multi-year financial plans, I strongly disagree with a scheme to borrow billions of dollars for operating expenses," she said. "That is a recipe for disaster," said Sen. Young about coupling borrowing billions with out-of-control taxes and spending.
"Incredibly, Lt. Gov. Ravitch said he didn't think the state could cut spending," she said. "His plan writes a blank check, line of credit for massive borrowing, but has no spending cap, tax cap, or requirement for a supermajority vote for tax increases. It would set our financial and economic recovery further behind.''
Parment, D-North Harmony, said he was pleased ideas were put forth by the lieutenant governor, and said he gives Ravitch credit for identifying problems and making a proposal. That doesn't mean Ravitch's proposal will earn an automatic yes vote from Parment.
"I'm just not willing to embrace his proposal," Parment said.
He said Ravitch was the first senior official in state government to admit financial problems were masked, and that it is commendable for Ravitch to do so in writing. Parment said he has spoken against practices such as borrowing that Ravitch suggests. He said he is not in favor of expanding New York's debt, nor is he in favor of how Ravitch suggests the borrowing.
"It's too easy," he said about the borrowing and how it would occur. "(The proposal) should be viewed as a framework.''
He said the proposal is a "structure that could guide the state to better budget practices." Parment said there are favorable parts to the proposal, such as disallowing changes in state law be put forth as budget bills. Despite agreeing with that, Parment said he would not favor a review board as proposed, but, rather prefers budget deliberations.
State Comptroller Thomas P. DiNapoli said while Ravitch is right to focus on the state's "fiscal mess," he said "borrowing billions is part of the reason we're in the current crisis."
"Borrowing to plug a deficit has serious consequences. For every dollar the state borrows, we end up paying two dollars back," he said. "All those dollars we spend paying off debt are dollars that can't be used to teach our children, keep us safe, provide health care or give taxpayers some relief," he said.
DiNapoli said debt costs are skyrocketing, with debt service one of the fastest growing categories of state spending.
"More debt would become part of the problem, not the solution," DiNapoli said.
Instead DiNapoli suggests his own plan that would ban backdoor borrowing by public authorities.
"Backdoor borrowing by pulic authorities accounts for 94 percent of the state's current debt burden," he said. "New York has already squandered too many opportunities for real reform. The last thing New Yorkers need is a replay of last year's buy-time budget.''