Gov's Budget: Taxes Soda & Cigs, Cuts For Schools & Hospitals

Photo Courtesy AP/Mike Groll

Gov. David Paterson unveiled a $134 billion proposed budget today that would impose new taxes on sugary drinks and cigarettes and cut school aid and health care spending by $1.1 billion and $1 billion, respectively. "The mistakes of the past — squandering surpluses, papering over deficits, relying on irresponsible fiscal gimmicks to finance unsustainable spending increases — have led us to a financial breaking point," Paterson said. "There are no more easy answers."

The cuts to education and health care spending will likely be met with heated opposition in the Legislature, "in part because health cuts will harm community hospital care and school aid cuts are likely to prompt school boards to raise local property taxes and cut programs," the Advance reports. To bring in new revenue, Paterson wants to impose a $1 tax increase on packs of cigarettes, bringing the total state tax to $3.75 per pack — the highest cigarette tax in the nation, according to 1010WINS. He also plans to tax soft drinks, legalize ultimate fighting, allow the sale of wine in liquor stores, reduce restrictions on Quick Draw lottery games, lengthen the hours that video slot machine parlors can stay open, and extend the income tax benefits of married couples to same-sex couples wedded in states where gay marriage is legal.

Among other proposed cuts, the Governor plans to nix $95 million from four year colleges operated by the State University of New York and $47.7 million from those run by City University of New York. He calls for reducing a long-planned increase in the basic welfare grant from 10 percent to 5 percent, closing several prisons, reducing the state workforce by 675 jobs, cutting $1 billion from state agencies, and giving less money to municipalities including New York City — which stands to lose $301.7 million in local municipal assistance money, according to the Daily News. The Legislature is expected to agree on a final budget before the new fiscal year begins on April 1.

Contact the author of this article or email tips@gothamist.com with further questions, comments or tips.

By Ben Muessig in News on January 19, 2010 12:19 PM

Comments [rss]

whitecastlerock

Yes more taxes... It's the only way

Mookie Wilson

Wine should remain in liquor stores! Not because there is anything wrong with there being wine for sale in a supermarket (it would be a lot more convenient), but this would crush all the existing liquor stores and probably put a lot of them out of business. Considering it is one of the last industries that still thrives as privately owned shops, this would be a bad move.

Ishtar

Untrue. Grocery stores in California sell liquor, wine and beer, yet that are LOTS of liquor stores. The reason? Even grocery stores in California has limited shelf space and must stick to the more popular brands of alcohol sold, this creating a great market for people looking for things other than E&J, Crown Royal, and your run of the mill wines.

Mordicai

Please tax cigarettes & soda; yes.

SimonLok

He'll look for every way to tax us further into oblivion, yet he makes promises not to cut a single state employee perk... ridiculous.

Phillip

Because he can't just cut employee benefits like that, they have to be renegotiated at the bargaining table and as seen by the TWU, a lot of these unions know they have the upper hand because everyone depends on them. Any changes wouldn't be retroactive anyway, they'd only be for new hires, so the savings wouldn't materialize for years anyway.

etypical

These asses can raise taxes on whatever they want. I haven't bought anything in this city besides coffee, pot and newspapers. Past 5 years I get everything from NJ or CT. all these crooked pols have taught me is to buy creatively.

Rocknrope

Aren't liquor stores allowed to sell wine already?

Ishtar

I'm thinking they could mean bodegas since some can already sell beer.

An aside, it annoys me that I cannot buy my wine in the same stores I buy my groceries. Wine shops are great when I'm looking to buy multiple bottles to restock, but it's irksome to have to stop buy one AFTER purchasing food for dinner.

schadenfreudian mensch

See if they start taxing the nutcrackers in bodegas and barber shops we would've been half way with a balanced budget.

Ishtar

buy=by

Spirit of 76

I have no objections to the cigarette tax, but cutting education? That's just short-sighted. Then again, considering who proposed this...

sidenote

Nothing is more addicted to tobacco than government budgets. Keep on smoking, everyone! If you won't do it for your own coolness, do it for the children.

schadenfreudian mensch

Keep smoking, drinking, and gambling more folks else the kiddies won't get their free metrocards!!! Yes do it for the children!