Catholic officials analyze Pataki's annual budget message

A $500 education tax credit in this year's New York State executive budget has Catholic officials in the Albany Diocese abuzz with excitement.

However, proposed changes in health care and housing that would hurt the poor are being met with concern -- as is Gov. George Pataki's plan to open 150 more charter schools in New York State.

"The state budget always has some good and some bad, and this is no exception. But, this year, there's a historic 'good' for the first time ever," said Dennis Poust, director of communications for the New York State Catholic Conference, which represents the state's bishops on public policy issues. "We're very pleased with the budget" because of the education tax credit.

Gov. Pataki, who gave his annual budget address last week at the Capitol, proposed total spending of more than $110 billion.

EDUCATION

Sister Mary Jane Herb, IHM, superintendent of Catholic schools for the Diocese, called the proposed tax credit "a first step" and applauded the fact that parents would be able to put the $500 education credit toward tuition at an independent or religious school, or use it for tutoring or summer instruction.

But Catholic officials are lobbying to expand Gov. Pataki's proposal, hoping for more money and a tax credit that would be open to families in all school districts. The Governor's plan would apply only to families living in under-performing districts.

"I hope we can work with legislators to negotiate a bill that can include all our families," Sister Jane stated. One such bill, currently being considered by the State Legislature, is sponsored by Sen. Marty Golden and Assemblyman Vito Lopez.

"Is [the Governor's proposal] everything we wanted? No, but it's a great start," Mr. Poust told The Evangelist.

On the other hand, the officials believe Gov. Pataki's plan to add 150 charter schools to New York's roster is a poor choice. Sister Maureen Joyce, RSM, executive director of diocesan Catholic Charities, pointed out that Catholic schools already serve the same function as the new charter schools would: providing a quality education.

Since Catholic schools must charge tuition, their enrollment could drop if a tuition-free alternative became available. Sister Maureen called such a move "discriminatory."

"Our Catholic schools have a proven track-record of success, which clearly these charter schools do not," Mr. Poust added. A better alternative would be "more generous support to parents to choose a religious or independent school" for their children.

HEALTH CARE

In his budget address, Gov. Pataki touted the need to control Medicaid spending, and Sister Maureen affirmed that Medicaid is "a major issue."

But "you can't take away people's health care to contain costs," argued Mr. Poust, citing proposals to increase copayments for members of the Family Health Plus and Child Health Plus programs for the working poor.

Similar changes were proposed in last year's state budget but defeated by legislators. Catholic officials hope for the same result this year. Sister Maureen said experience shows that if copayments are increased, New Yorkers living in poverty will not see doctors when they become ill.

"People don't have that kind of out-of-pocket money to spend on health care," Mr. Poust explained.

Also worrisome are steep cuts to reimbursements for healthcare providers: namely, a $327 million reduction in payments to hospitals and another $288 million drop for nursing homes. The Healthcare Association of New York State, which represents more than 550 non-profit healthcare institutions, called the budget "another assault on hospitals and nursing homes."

"When you cut reimbursements to providers, it's very difficult for them to continue providing services," said Mr. Poust. "The reality is they need an increase! We haven't kept pace with the cost of care. This is really going to squeeze hospitals that are already operating in the red. We hope the Governor will restore some or all of this funding."

HOUSING AND POVERTY

Sister Maureen saw a pattern in the Governor's recent "State of the State" address, his budget address and the executive budget itself: The needs of the state's poorest residents are being ignored.

She noted that Gov. Pataki is proposing tax breaks for the wealthy, but "this would have been the opportunity to say the people in New York State who have tried to be successfully employed are the ones who need the tax break."

Instead, she asserted, Catholic Charities agencies are being flooded with working poor who have transitioned from welfare to work but still have to patronize food pantries and beg assistance with heating bills and unexpected expenses.

Mr. Poust said this lack of concern for the poor was highlighted in two areas of the executive budget: cuts in affordable housing and damaging changes in the way public assistance benefits are calculated.

Gov. Pataki is proposing that two programs be cut by $5 million each: the Neighborhood Preservation Program, which promotes the development of affordable housing in urban areas; and the Rural Preservation Program, which does the same in outlying areas. The same cuts were proposed but restored last year.

Housing and healthcare, said Mr. Poust, are "basic human rights. This is not where we should be looking for our savings."

He also cited an incentive to transitioning from welfare to work that's being threatened. Until now, families on public assistance who became employed have been allowed to disregard half their job earnings when determining how much public assistance they will continue to receive. The budget proposes cutting that allowance in half after five years. That doesn't encourage people to enter the workforce, officials said.

"This is an example of a successful welfare-to-work program that should be continued," Mr. Poust stated, noting that many needy New Yorkers struggle to enter the workforce because of disabilities or other challenges. "This is a program to help the people who have the most obstacles in front of them to working."

CONCLUSION

While the Catholic officials approved of the State Legislature's apparent agreement to pass an on-time budget for the second year in a row, Sister Maureen said it's hard to predict what that budget will include.

The executive budget, she said, just indicates "what the budget means today."

After the State Senate and Assembly "whittle away at the bills," the end result may be very different.

(A rally concerning the education tax credit will be held Feb. 14 at the State Capitol. Organizers hope that Catholic educators will turn out in favor of a wide-ranging tax credit for families in all of New York's school districts. Learn more at www.nyscatholic.org.)

(1/26/06) [[In-content Ad]]