Even if states balance budgets, services cuts, high taxes, fees likely to stay

For the first time in many years, the state of New York owes me a tax refund — all of $13. But our governor, David Paterson, doesn’t want to give it to me — at least not right away. (And he wants to be re-elected?)

I’m not alone. Paterson wants to hang on to about $500 million in tax refunds due the state’s citizens. It’s an accounting dodge brought on largely by the political failure of the governor and the state Legislature to balance the budget. By law, the state cannot run a budget year in the red. So, rather than face the realities of a $1.4 billion budget deficit, New York’s incompetent, selfish leaders do what they always do — punt, in this case, until next year. That half billion will be rolled out of fiscal 2009 and into fiscal 2010. Out of sight, out of mind. That’s New York’s insanely inept government: Never deal with reality.

Maybe, state officials promise, I’ll see my $13 in April, two and a half months from now. Well, I’d rather be the one collecting the interest on that $13 over that time rather than the state. Sheesh.

Of course, New York’s financial woes aren’t that simple, and it’s not always (but mostly?) Albany’s fault. Recession + people out of work = higher costs + lower tax revenues + increased fees + fewer services. And New York’s not alone. One estimate puts the total fiscal 2010 budget deficit of all states at nearly $150 billion.

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