VALLONE CALLS ON THE CITY TO CONSIDER SECESSION (Introduces legislation to start the process)
New York, NY -- Governor Pataki?s latest budget proposal, coming on the heels of the largest property tax increase in NYC history, and Pataki?s refusal to settle the education money lawsuit is the last straw, according to Council Member Peter F. Vallone Jr.
"The State has treated us like an unwanted orphan for too long. It may be time for us to move out," remarked Vallone. ?New York City is suffering its most severe budget crisis in history, largely due to the attack on the World Trade Center, but we would have been able to withstand this attack financially if not for the actions of the State.?
Vallone cited the following as the most recent outrages:
1. Governor Pataki's refusal to settle the education lawsuit. Upstate students receive on average $9,810.00 per student while New York City receives $8,934.00. Presently we receive just 35.4% of total school aid. While refusing to fix this inequity, the state agreed to a $45 million bailout of the Buffalo School System, $10.6 million to the Schenectady School system in 2002 and $300 million to Yonkers Schools over the next five years.
2. The refusal to reinstate the commuter tax which has taken close to $2 billion from the city over the last four years. "This should have been done on 9/12/01. We don't need words of encouragement from the State, we need the dollars we are entitled to," said Vallone. "In 1989, after the San Francisco earthquake, the State of California enacted a quarter cent rise in State sales tax to raise $1 billion in disaster relief. That?s real help, not just words."
3. In October 2001, the State eliminated the payment to New York City it had been making since the elimination of the stock transfer tax, despite the fact that New York City had been attacked and a huge deficit was looming, resulting in the loss of $114 million per year.
4. The State's refusal to change its requirement that NYC pay for 25% of Medicaid costs which results in a loss of $3.1 billion per year to NYC.
5. The fact that the city sends at least $3.5 billion more in revenues to the state than it receives in state spending. For example:
* In 2000, the state increased revenue sharing aid to localities outside NYC but froze sharing with NYC, resulting in losses of $28 million per year;
* The School Tax Relief program (STAR) delivers 70 dollars per pupil in NYC and 413 dollars per pupil outside NYC;
* We move 84% of State transit riders but receive 63% of state transit, resulting in a loss of $325 million;
*Of the $1.75 billion Environmental Bond Act funds, only $222 million is allocated to city, even though close to 50% of revenue for the fund comes from NYC;
* City residents pay a cell phone surcharge in the amount of $1.50 per month, which has resulted in over $160 million in revenue to the State. The State has used this money to pay for a State Trooper System city residents do not use, instead of being used to enhance our 911 System, as the law requires. Vallone has already introduced a resolution calling for that money to be returned to the city to pay for Emergency 911 System.
"If NYC controlled its own money, we could lower the Personal Income tax 20% and eliminate the property tax increase and still have a $1 billion surplus to fund police and schools," stated Vallone. "New York City doesn?t need state aid, it needs, its own dollars back."
Vallone is introducing legislation that would put the question to the voters. A ballot question would be voted on to determine whether a Commission should be created to study the issue. After the commission holds hearings, it drafts a proposal that is once again voted on in a referendum. If approved, State Legislation must be signed to allow secession.
"New York City residents have big shoulders. While we were able to help other areas of the state through difficult times, we did. But now, our taxes are too high and our cuts are too deep. We need to use our own money for our own needs," stated Vallone.