Cuomo Unveils 2012-2013 Budget

New York Governor Andrew M. Cuomo today released details of his proposed $132 billion spending plan for the 2012-2013 year, a budget that is $225 million less than last year’s and, according to Bloomberg, contains no new taxes or fees. While the proposal itself is actually 2 percent higher than last year’s spending plan, when federal funding is taken into account, the budget is a little lower than 1 percent lower than the previous one and, if implemented, would eliminate a $2 billion deficit, according to the Associated Press.

At the same time, the budget proposal also contains a 4 percent increase in education aid, $805 million, though it is contingent upon school districts agreeing to a new teacher evaluation system within one year, according to the New York Daily News.

In the interests of saving money, Cuomo’s proposed budget also cuts capital spending by 2 percent, with bonded capital spending being cut by 5.9 percent, according to Reuters. New capital projects would be funded by selling about $5.1 billion worth of bonds, and through using annual operating revenue instead of borrowing for short-term projects, according to Reuters.

The proposed budget would also seek to cut labor costs by making newly hired state, county, municipal and school district workers choose between having a defined contribution plan invested in by individual workers or having a less generous pension than current public employees get, according to the New York Times, a move that will surely cause clashes with public worker unions.