Capping the Well of Red Ink

Finally!

Lame-duck Governor David Paterson now proposes new legislation to cap the well of red ink in New York. The proposal is long overdue in light of one budget crisis after another.

For too long, New York Governors and lawmakers have engaged in a minuet of self deception, skirting around the financial reality that no one can forever spend more than he has. We have seen a myriad of fiscal tricks, such as selling state prisons to the Dormitory Authority, raiding supposedly dedicated taxes for so-called "emergency" spending, and those pie in the sky bond issues that never seem to get the job done.

Now, Paterson has awakened to the realization that this cannot continue. Since he only has a few months left in the Governor's Mansion, there is little political capital at risk with his proposal to require a balanced budget and give future governors the power to unilaterally trim spending when the budget falls out of whack. Even more appealing, is the provision that cuts off Albany's power to borrow further to close fiscal gaps.

These are the kinds of rules that ordinary taxpayers have to obey in their everyday lives. If the household budget runs short, you don't borrow more to buy a new car or appliance; you trim your spending, look for new sources of income, and wait until you can afford to fulfill those cravings for new vacations, services or belongings.

Smoke and mirrors don't add up to sensible bottom lines. Yet fiscal sleight of hand has been the rule in Albany, rather than the exception. The old methods are long overdue for a substantive makeover. The rest of us have to get real in a time of tight money, scarce jobs and lean family budgets. State lawmakers have to understand that gimmicky taxes, fees and borrowing only work in the short term. In the long view, they chase taxpayers out of the Empire State, leaving fewer behind to pay down the mounting debt.

The New York State Legislature has proven itself incapable of producing balanced budgets in a timely fashion. As a result, local schools and municipalities find themselves gasping for air in a mire of uncertainty.

We all remember President Harry Truman's comment that "the buck stops here." Perhaps we should take a page from the Truman Doctrine of accountability and put this on the shoulders of the Governor, whoever it may be in years to come. At least then, we know exactly whom to blame.

Now comes the bigger question. Will a chaotic and self-absorbed State Legislature be willing to cede more fiscal authority to the Office of the Governor? Does David Paterson have any political leverage left to effect such a reform? What do the contenders for Paterson's job have to say about this? Stay tuned.