Morelle Header
April 2006

Update
Legislature Overrides Pataki Vetoes
New State Budget Preserves Crucial Programs, Provides Tax Relief

The New York State Legislature this week voted to override Gov. Pataki's budget vetoes, preserving nearly $5 billion in tax relief for New York's working families as well as vital support for health, education and local governments. I'm especially pleased at the new level of funding included for the City of Rochester and the Rochester City School District, and that Monroe County's elected officials worked together to achieve our common goals.

The veto overrides - the second such action the Legislature has taken in the past four years - conclude what I believe to be an important and even historic budget session in Albany. For the second year in a row, we delivered an on-time budget that provides New Yorkers with better services and reduced taxes. New York's combined tax burden is the highest in the nation, and this year the Legislature took meaningful steps toward reducing that burden. Consider:

- Nearly $1 billion in property tax rebates to homeowners.

- A Child Tax Credit of up to $330 per child, ages 4 to 17, totaling $600 million in savings.

- A reduction in the marriage penalty tax, saving married couples more than $40 million.

- Purchases of clothing items under $110 will no longer carry a state sales tax charge.

The budget also includes a five-year, $250 million expansion of the film and TV production tax credit I first introduced in 2004. This incentive has already proved highly successful, adding thousands of jobs to the state's economy and creating billions of dollars in new economic activity. The expansion ensures that New York State will continue to be a destination of choice for major motion picture and TV productions.

In a similar vein, the Legislature also approved a $7 million tax credit to encourage the filming and production of TV commercials in New York. The budget specifically earmarks $1 million for commercials made in Upstate, a proviso I believe is necessary as part of our overall effort to bolster the region's economy.

Getting Our Fair Share

Closer to home, the new budget holds good news for Rochester and Monroe County. The City of Rochester will receive the largest increase in aid of any of the state's large cities: 33 percent, or $17.9 million, above the $54 million allotted in 2005-2006. Thanks especially to Mayor Bob Duffy for his leadership, partnership and support during a difficult period of negotiation.

We were also able to secure an additional $61 million in operating aid and capital funding for Rochester city schools, making it possible for the district to meet its fiscal and programmatic obligations. For a district with the highest rate of child poverty in the state, this support is crucial.

Also, as chairman of the Committee on Tourism, Arts, and Sports Development, I'm pleased that the Legislature approved $36 million for the multi-venue performing arts component of Rochester's Renaissance Square project, as well as $5 million for the construction of PAETEC Park, the new home of the Raging Rhino's soccer club. Vibrant arts communities and abundant sports attractions will be key elements of upstate New York's economic revival, and supporting these exciting projects is the right investment of our resources. This is another example of a state budget that serves citizens while maintaining fiscal accountability, and those will be the principles that guide me as I continue to work on your behalf in the Assembly.

Constitutional Challenges Ahead

I believe the Legislature acted correctly by reversing the majority of gubernatorial vetoes. By doing so, we reinstated much-needed tax relief while also avoiding deep cuts to hospitals, nursing homes, school districts and the state university system. But the state's budget difficulties are not resolved; the governor has issued a constitutional challenge regarding the Legislature's override authority. It is my hope this conflict can be resolved rapidly and permanently, so that the state's budget process will again have the proper checks and balances and the full confidence of the people of New York.

All of us - the governor, legislators, and citizens - must work together to put our state on sound financial footing to ensure fiscal stability and economic prosperity, today and for future generations of New Yorkers.

About NYS Assemblyman Joseph D. Morelle

Since 1990, Assemblyman Joseph D. Morelle has represented the 132nd Assembly District, which includes portions of the city of Rochester and the Monroe County suburbs of Irondequoit and Brighton. During his tenure in the NYS Legislature, Joe has made economic development and expanding employment opportunities his top priority.

Email Marketing by