Should New York State voters be asked to approve a $5 billion “Clean Water, Clean Air & Green Jobs Bond Act” this year? That question will be the focus of a public hearing the state Assembly will hold on May 27 in Albany.
The Assembly hearing notice says such a bond proposal “has been suggested,” but doesn’t say by whom**, and offers no other details of how the money would be spent, or why so much is needed. A $5 billion general obligation bond issue would be the largest (in nominal terms) in the state’s history. The “Clean Water/Clean Air Bond Act,” approved by voters in 1996, was just $1.75 billion. The last transportation bond issue, approved in 2005, was $2.9 billion.
New York already ranks second in the nation in state debt. The state comptroller’s office says outstanding state-supported debt in New York will exceed $66.8 billion by 2013-14 — up from $52 billion as of two years ago — and debt service will reach $7.9 billion, up 47 percent from the fiscal 2008-09 level. Roughly 94 percent of state debt was issued by public authorities with legislative authorization, but without public approval.
The 2009-10 budget merely adds to the problem — misusing environmentally related debt, in particular. As the comptroller’s latest state budget report notes:
The SFY 2009-10 Enacted Budget authorizes the issuance of approximately $200 million in bonds for spending that would normally be covered with current cash resources, including $95 million for the Environmental Protection Fund (EPF). The Enacted Budget utilizes a sweep of $95 million from the EPF in order to balance the General Fund, all of which may be replaced with bond proceeds, thus creating additional debt costs in out-years. While debt is an essential tool for financing capital needs, the annual out-year impact of additional debt service may be significant. In this case, out-year debt service costs will increase total costs of environmental and other purposes by over $20 million, as a result of the additional bonding in SFY 2009-10.
** UPDATE: The bond act idea is being pushed by this coalition of labor union, environmental and business groups.
You may also like
New York’s Hospital Industry Ranks Near the Bottom of Two Quality Report Cards
New York's hospitals remain near the bottom of two quality report cards. The state's hospitals received the lowest rate of any state except Nevada and DC. Read More
As a Supreme Court Ruling Loomed, Cuomo Bent His Own Rules on COVID ‘Clusters’
In the midst of the constitutional showdown over his pandemic policies, Governor Cuomo made changes to a disputed Brooklyn 'cluster zone' that seemed to contradict his own declared guidelines.
Read More
New York Has Widened Its Lead in Per-Capita Spending on Medicaid
New York's per-capita Medicaid spending soared to more than double the nationwide rate in 2018, widening its gap with the other 49 states. Read More
Essential Plan surplus hits $3B
As Governor Cuomo pleads for financial help from Washington, one of his state's programs is sitting on $3 billion in unspent federal aid: the Essential Plan. Read More
Upstate escapes the worst
With the coronavirus pandemic hitting some parts of New York much harder than others, Governor Cuomo has signaled that he will begin to relax shutdown restrictions in low-virus parts of the state.
Here's a closer look at how infection and fatality rates vary from region to region. Read More
NY is shorted on virus relief
Although New York is taking the brunt of the coronavirus pandemic – with 43 percent of the nation's known cases and 40 percent of the deaths – the state is due to receive only 5 percent of the $150 billion Coronavirus Relief Fund just established by Congress. Read More
NY’s uninsured rate hits new low
Bucking the national trend, New York's uninsured rate dropped for the eighth consecutive year, new data from the Census Bureau show. The share of New Yorkers lacking health coverage in 2018 was 5.4 percent in 2018, down from 5.7 percent the year before. The number of people lacking health coverage dropped by about 72,000, to just over 1 million. Both the rate and the number are roughly half what they were in 2013, the year before the Affordable Care Act went into effect. Read More
SOTS health-care roundup
Health care was the dog that did not bark at Governor Cuomo's combined State of State and budget address on Tuesday. Instead of announcing a major plan to expand coverage, he called for appointing a commission to study "options for achieving universal access" and report back by December – a clear sign that he has no stomach for tackling the issue in this session. Read More