Balance the budget. This budget fails to finance current spending with current resources, as defined by GAAP. Balance should be accomplished with expenditure reductions, such as those described below.

Significantly reduce reliance on one-shots and devote the fiscal year 1997 surplus to reducing outstanding debt. Reliance on non-recurring revenues allows the State temporarily to support unaffordable spending. Devoting the fiscal year 1997 surplus to retiring outstanding debt would eliminate the largest one-shot in this budget and reduce future debt service spending.

Restructure State operations more aggressively. In this budget less than three percent of the budget gap is closed by restructuring State operations. Reengineering service delivery and permitting private firms and nonprofit agencies to compete with the State workforce would provide additional large savings.

Implement greater savings in Medicaid-financed long-term care services. New York’s long-term care costs are well above the national average, in part because services are provided to affluent families. Eligibility rules should be tightened to target Medicaid benefits only to the indigent, and incentives should be provided for families to purchase private long-term care insurance.

Centralize the administration and financing of social welfare programs. Statewide administration of public assistance, Medicaid and foster care would improve the quality of services and save money. Statewide financing would reduce local taxes, narrow intrastate tax disparities, and increase New York’s competitiveness with other states.

Retain current public assistance cash benefits. New York’s cash benefits are needed by the poor to sustain minimally acceptable living standards; they have been eroded by inflation for two decades and should not be cut further.

Do not authorize a new education aid and tax relief program that disproportionately benefits wealthy districts. The proposed STAR program does not address the current inequities in education aid. Equitable education funding should be promoted by reducing aid to districts with relatively high tax bases. In addition, the program’s tax relief component is poorly targeted. Taxes in wealthy, high spending districts probably will decline, while taxes in poor, low spending districts may rise.

Reduce estate and gift taxes. The Executive Budget would make New York's treatment of gifts and inheritances comparable with the practices of most other states with which New York competes for residents.

Build on the Executive Budget’s restructuring of State operations. The proposed agency consolidations and reorganizations are the first steps in reforming the State's service delivery structure.

Adopt the proposed Medicaid cost containment proposals. The Executive Budget reduces Medicaid spending by controlling provider payment rates and, for the first time, by introducing competition into long-term care services.

Reform special education. Reforms would foster greater integration of general and special education and remove the financial incentives to place children in special education initially and in highly restrictive environments within the special education curriculum thereafter.

Exempt projects from the Wicks Law. The Executive Budget proposal would exempt City University of New York and small local government construction projects from the Wicks Law. Ultimately, the Wicks Law should be repealed.