NY Budget Raises Region Tax, School Funding

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NY Budget Raises Region Tax, School Funding
By Amanda Erickson
Spectator Staff Writer

April 21, 2005

It’s official. The numbers have been crunched and the counts tallied—New York State’s budget is ready to take effect. This budget, punctual for the first time in 21 years, will have an impact on both New York City and Columbia with increases in taxes and spending.

One major change that has gone into effect will show up on credit card bills and in stores, as the sales tax will be raised and eigth of a percentage point in the area serviced by the Metropolitan Transit Authority to an overall 8.625%.

According to Scott Rief, a spokesman for the governor, the plan for the increased sales tax was suggested as a method to pay for projects in the MTA region.

Rief noted that the funds are necessary to “fund mass transportation projects.”

Some community leaders disagree that this is the method that should be used to raise funds for the MTA. “I’m generally opposed to sales tax increases,” Assemblyman Danny O’Donnell (D–Morningside Heights) said. He instead advocates raising income taxes. “It’s a very brave thing to do,” he said. “Much more progressive.”

Senator Eric Schneidermann (D-Upper Manhattan) agreed that increasing the sales tax to fund MTA projects was not an appropriate decision. There are “better ways to [fund the project] then with a regressive tax, paid disproportionately,” Clifton Pool, Schneidermann’s head aide, said. But it’s “a tough year to close the budget gap.” Pool said he believes the governor could have used other methods for raising funds, such as taxing commuters who use the MTA one percent of their incomes.

Other local leaders see the governor’s decision to direct the funds toward the MTA as potentially dangerous. “MTA projects should be closely scrutinized by the legislature before any money is put into that bottomless pit,” Jordi Reyes-Montblanc, chairman of Community Board 9, said.

Local legislators are also particularly proud of the aid they’ve preserved for higher education in New York State. Among other programs, the legislature was able to restore the TAP program, which provides cash to low-income residents, ensure no tuition increases at public CUNY and SUNY schools, and maintain the HEOP program after the governor proposed changes in his original budget.

“This was important to students in all parts of the state,” O’Donnell said. Restoration of the financial aid cuts was “one of the biggest victories,” Pool agreed.

Another element of the budget will directly affect Columbia. The legislature has agreed to provide $150 million in funding for improvements and renovations at private colleges and universities. This decision comes at a price—$100 million was cut in funding to public colleges this year. These allocations represent a mentality shift in how to get aid to needy students.

“If you look at statistics, private colleges and universities have a high percentage of lower income students,” Ellen Smith, vice president of Government Affairs at Columbia, said. It is “higher here than state institutions.” Smith’s argument echoes that of the Commission of Independent Colleges and Universities, a lobbying group, that asserts private schools play host to a larger number of low income students than public schools.

As a result, it is the private colleges that need funding and support.

But some at public universities dispute this fact. David Henahan, spokesman for SUNY, told The New York Times that the statistics used by CICU are “manufactured” because they do not take into account the students attending state-run community colleges.

Through the program, the state will provide one dollar for every three that the university spends on capital development. Money will be allotted based on campus size and the financial need of students. Development funding must go to specific items, including economic development or urban renewal projects.

“This is really good news for independent colleges throughout the state,” said Dennis Kennedy, a spokesperson at the Commission on Independent Colleges and Universities, which actively lobbied the state to provide this funding. “It will enable them to build and rebuild their infrastructures to better help their students and communities.”

While Columbia is unsure of how much money it will be allotted, there is little doubt that the results will be positive, Smith said. “It is historic that the state legislature will consider doing this,” she said. She could not comment on how the money would be spent.


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