| QUESTION: What are your thoughts on the budget proposed by Governor Paterson?
HOYT: There is no doubt we are in a crisis situation like most of us have never seen. We haven't seen anything like this since the Great Depression.
I believe Governor Paterson has handled himself very well to date. He said that this is truly an economic crisis and he scored high points with me and the general population on that front.
With his Executive Budget proposal, he is making extremely difficult decisions at a challenging time. In his introduction to the Executive Budget, the governor acknowledges that this is the beginning of a process. It is where he stands and where his priorities are. He then submitted [the budget] to the Legislature for our comment.
In the end, the final product will be one that is like the one Governor Paterson proposed but in many ways has changed.
I don't bury my head in the sand and believe that we can tax our way out of this. We can't tax our way out. It needs to be a combination of a reduction in expenses and an increase in revenues but I don't think that the governor went far enough in terms of reform.
First, a vast majority of taxes and fees unfortunately hit the middle and low income New Yorkers the hardest. We have witnessed over the past 12 to 16 years a trend of tax relief that has benefited our highest wage earners in New York State and across the United States. They are the beneficiaries of federal and state tax policy. As proposed, they will be held harmless in Governor Paterson's tax proposal.
If taxes are increased on the wealthy through a millionaires tax, that would mean that there is less of a burden on the lower and middle income earners in New York. We need a millionaires tax or a half millionaires tax. Those who can most afford it are included in the category of those who will pay their fair share.
We also need to look at reforms, consolidations and mergers. One example of this is merging the New York State Department of Transportation (DOT) with the Thruway Authority. I am also brainstorming a way we could merge NYSERDA, the DEC and NYPA and create the state Department of Environment and Energy.
We have far too many authorities in New York. We need to cut the number of authorities in half. In Buffalo and Niagara Falls, we have four international bridges within 20 miles of each other that are run by different agencies. We need a more coordinated transportation policy.
As a member of the New York State Commission on Local Government Efficiency and Competitiveness, I know that Attorney General Andrew Cuomo and Stan Lundine (the Commission's chair) have done great work on these issues. We have too much government in New York. We have too many duplications. We need to reduce the property tax burden by sharing services.
I chaired the Local Governments Committee in the Assembly. We have discussed these issues. There are 700 school districts in New York. Amherst has four school districts. Cheektowaga has five school districts. That results in high school taxes.
You can't say reduce my taxes and you can't say that you can't afford to live here unless you agree to merger and consolidation. You can't have it both ways. There is a saying that a crisis is a terrible thing to waste. Everyone wants to talk change but no one wants to actually change.
Q: Please elaborate on your opinion of Governor Paterson's new taxes and fees, as well as your thoughts on the millionaires tax.
HOYT: The lower and middle income earners feel the greatest burden of fee and tax increases. The highest earners should share in that burden as well. What is likely to happen is we will adjust what the governor has called for. We need to restructure the income tax so that the wealthiest of wealthy are paying their fair share but we also need to reduce expenses. It needs to be a combination of the two.
Q: What is your opinion of the property tax cap that is supported by Governor Paterson and other leaders in Albany?
HOYT: It is my understanding that the five biggest cities are exempt. In general, the goal is a noble one. But what it does is it locks in a high tax rate and allows for four percent growth annually. That's a risky thing to do. Do the people of New York deserve tax relief? Absolutely. But that approach (the tax cap) isn't the best approach.
Q: What are some of the issues you will be focusing on in the new session?
HOYT: I am very concerned about upstate New York. I have given a lot of thought into starting an upstate caucus. We would form an upstate caucus and look out for the best interests of upstate. [This is where Hoyt mentioned high speed rail, which you can read about above.]
I will continue to fight for IDA reform. This issue is a hot one in my community. Bringing in historic preservation tax credits would be very beneficial to upstate New York.
Empire Zones needs to be reformed, but I wouldn't throw the baby out with the bath water. Most abuses of the program happen in downstate and that's what got the leadership's attention. We need a level playing field. Eliminating the program would be disastrous. It does need restructuring to avoid abuses and we need to have strategic advantage that we don't have with regular competition.
MY THOUGHTS: Hoyt presented a lot of interesting ideas in this interview, including his continued support for high speed rail. If high speed rail does happen in New York, one of the people we have to thank is Sam Hoyt. He has long been an advocate for it, but as an assemblyman, there is only so much he can do as one person. If the federal government gets on board, that can mean great things for New York.
I like Hoyt. He is a real leader in the Assembly and has long been a voice for his district and upstate. That is a very good thing to have. He has had his problems to face over the years, but he has handled them well and hasn't let them stand in the way of being a reformer and a fighter in the New York State Assembly. |