STATEMENT

by Kathryn S. Wylde, President and CEO
PARTNERSHIP FOR NEW YORK CITY

New York, New York
April 9, 2008

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Statement From Kathryn Wylde, President & CEO of the Partnership for New York City on the 2008-2009 State Budget

“Governor Paterson negotiated a budget that sets the stage for dealing constructively with the fiscal and economic challenges that New York faces over the next few years. We applaud this effort. The fact that the budget includes certain business tax increases that come down hard on the financial services and media industries is not helpful during an economic downturn, but at least there are sunset provisions on some of the most onerous taxes. Most important, is that agency spending will be reduced by more than two percent, indicating that Governor Paterson will bring some fiscal restraint to the statehouse. Based on this approach, we anticipate a collaborative rather than a combative relationship.

“When he took office last month, Governor Paterson inherited an Executive Budget proposal that did not acknowledge the economic realities facing the State. The Partnership agrees with his assessment that more cuts will be necessary to balance next year’s budget, which has a projected $3.6 billion structural deficit for next year.

“We are disappointed that there was not time to deal with the structural deficit this year and call upon the Governor to convene an on-going dialogue with business and fiscal experts to identify the additional efficiencies, spending cuts and new sources of revenues that will be required to maintain economic growth during a national recession.

“Given the fiscal challenges we face, it is particularly disappointing that the State failed to allow New York City to enact congestion pricing and secure $354 million in immediate funds for New York City from the federal government, as well as the $500 million annual revenue stream for mass transit. Hopefully, this important funding source will be resurrected in the coming months. Congestion pricing is still the most effective way to reduce traffic and raise critical revenue for mass transit, and the Partnership will continue to work with New York’s elected representatives on this important issue.”

The Partnership for New York City (www.pfnyc.org) is a network of business leaders dedicated to enhancing the economy of the five boroughs of New York City and maintaining the city’s position as the center of world commerce, finance and innovation.