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Republican lawmaker proposes ‘Penny Plan’ for NY government

A Long Island Republican believes that cutting one penny from each dollar New York state government spends would result in more than a billion dollars in savings each year.

Assemblyman Douglas Smith, R-Holbrook, has introduced legislation in the state Assembly (A.8913) that would direct the state Comptroller’s Office to devise just such a plan. The One Percent Spending Reduction Act was introduced in the state Assembly on Dec. 30. Companion legislation has not been introduced in the state Senate.

New York, with a population of 19.5 million people, has a budget of $176 billion while Florida, with a population of 21.3 million, has a budget of $91 billion. New York spends $9,000 per resident while California spends $5,400 per resident and Florida spends $4,300. The state has a $6.1 billion budget deficit as Gov. Andrew Cuomo prepares to release his 2020-21 executive budget proposal.

Smith’s legislation would direct Comptroller Thomas DiNapoli to conduct a study and make recommendations of how to reduce spending by one percent every year over the course of eight years. The act would reduce state spending by 7.7%, or $13.6 billion, over eight years.

“New York is not a state known for its financial restraint,” Smith wrote in his legislative justification. “Consider that the 2019-20 enacted budget totaled $176 billion, that New York ranks second in the nation for resident tax burden and 48th in the nation for business tax environment, and the conclusion is clear: New York has a spending problem. … “The only solution is to cut spending. The “Penny Plan” is a smart way to make gradual reductions in spending.”

The text of Smith’s legislation directs the comptroller to identify administrative waste, fraud and abuse in state agencies and to find ways to consolidate programs and create savings. The comptroller would also be asked to identify areas with excess spending, though no cuts could be made to any Social Security or retirement programs.

Smith’s plan is reminiscent of former County Executive George Borrello’s first budget, in which the Hanover Republican said he was looking for a bushel full of pennies in an effort to cut Chautauqua County’s budget. Borrello began that 2018 budget with a $4 million structural deficit.

“A penny by itself isn’t worth much. Most people wouldn’t even bend over to pick one up on the sidewalk,” he said. “But if you fill a bushel full of pennies, there is about $332. Every little increment makes a difference. We’re approaching a county budget of about $230 million, with thousands and thousands of line items. I asked the staff to bring their pennies to fill our bushel, and they did. I was really impressed with all the small incremental savings brought forth by different people. I challenged them and they really stepped up.”

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