January 2000

Pataki Proposes Education Improvements and Tax Cuts

Outlines Plans in State of State Address

By Fong Chan

Governor George E. Pataki, in his annual State of the State address to the New York State Legislature on January 5, posed a number of initiatives to strengthen the state's educational system and a comprehensive package of tax cuts totaling $700 million annually.

Beginning his sixth year as governor of New York, Pataki has made educational reform the cornerstone of his legislative agenda in 2000. Responding to the severe shortage in qualified teachers, the governor proposes, under a "Teachers for Tomorrow" program, to provide free tuition to students attending state or local colleges who commit to teach critical subjects in the state's most disadvantaged schools. The program also includes incentives for students attending private colleges.

Pataki also announced proposals regarding teacher certification, including additional funds to help the state's 10,000 uncertified teachers pay the cost of the education or training needed for certification and opening the certification process to allow individuals with life experience to be eligible to teach in public schools.

Other major proposals contained in the State of the State include:

* Phasing out the state's $500 million gross-receipts tax on energy. The tax, imposed on both residents and businesses, would be eliminated first for industrial and manufacturing businesses.
* Providing $700 million annually in new tax cuts and economic development initiatives, including cutting taxes for farmers who work 16-hour days, cutting taxes for small businesses, and providing tax incentives for employers who start or expand businesses in designated upstate cities under the Main Street program.
* Creating technology enterprise zones in upstate New York. Businesses that locate in these zones would be eligible for a wide range of incentives, including tax cuts, interest-free investments, and lower energy costs.
* Expanding the Power for Jobs program, which provides low-cost power to upstate businesses that agree to create or keep jobs in the region.
* Increasing criminal sanctions for individuals convicted of more than three misdemeanors and expanding the state's DNA database to include anyone convicted of any crime.

The State of the State address, which takes place the first week of every year, gives the governor an annual forum to review the administration's past accomplishments and to articulate his legislative vision for the upcoming year. As a vision document, the proposals contained in the address usually are couched in very general terms. In order to achieve passage, the governor must next transform these proposals into specific legislative bills sent to the Legislature for its consideration and approval.

"Based on past experience, it is very unlikely the proposals contained in the State of the State will be enacted in their current form," said NYSSCPA Executive Director Louis Grumet.

Pataki's budget proposal came out on January 11 and now the New York state budget negotiations between the governor and both houses of the Legislature begin. Watch http://www.nysscpa.org and The Trusted Professional for updates on the budget proposals. *