Updated 01/14/2009 06:14 AM
Schumer, Paterson push for more federal school aid
UNITED STATES -- Wall Street got its handout. Now lawmakers in Washington are working on the specifics for a plan to bailout state governments, many of who, like New York, are facing major deficits.
"The government is giving with one hand and taking with the other,” said Senator Charles Schumer. “It doesn't benefit the economy."
A third of the more than $750 billion stimulus package will likely go to state governments. Now Senator Charles Schumer and Governor Paterson are asking that $80 billion of that package to go directly to education. New York's share would be around $6.4 billion.
"We have excellent schools, but New Yorkers are caught between a rock and a hard place. On the one hand, they want to maintain the quality of their schools. On the other hand, the property taxes is the only real funding source," Schumer said.
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Another $5 billion would go toward Medicaid funding and state infrastructure projects. But even with the extra help from Washington, Paterson warns that state lawmakers will still have to make drastic budget cuts.
"Even with the addition of resources from the federal government, it will all go to waste if we outspend it and so what we are gonna have to do is change the culture of spending in this state," said Governor David Paterson.
"It sort of gives the state a little breathing room to do the restructuring that's necessary, but it doesn't avoid the need for it," Schumer said.
The governor has come under a lot of criticism for the numerous fees and tax increases included in his budget proposal. He says he doesn't want to speculate on what he'll do in the future but says including those taxes and fees was a last resort.
"If there was a way to make some adjustments, that would be my preference for the first way to go," Paterson said.
The additional school funding, if approved, would be available immediately to school districts, spread out over two years. Of course, congress has to first past the legislation. Senator Schumer says he's confident the bill will be on the president's desk by February 13th.