We've told the story in this space before about the farmer who was whacking his mule across the head with a 2-by-4. When his neighbor asked why he was beating the animal so mercilessly, the farmer replied that if you want the mule to do something, "First you've got to get his attention."
We used that analogy in connection with state government and the budget deficit. Well, reality continues to whack Albany over the head.
The latest blow is the crisis that has hit the folks in the world of high finance. Gov. David Paterson says the state gets 20 percent of its revenue either directly or indirectly through the activity on Wall Street and other financial institutions. That sector is in tough shape these days.
On Friday, the governor reported that business taxes collected from New York's 16 largest banks for the past six months were down more than $200 million, a drop of about two-thirds. It's expected to be even worse for the rest of the fiscal year.
And while income taxes held steady over that same period, they're not expected to do the same in the near future. Fewer people will be working on Wall Street and in the financial sector. Those who are left will be making less and garnering smaller year-end bonuses, all of which will serve to cut income tax revenue to New York. All in all, the former Empire State will be hit harder than any in the union by the financial problems we're experiencing.
To deal with the potential $1.2 billion shortfall in this year's budget, the governor on Friday called for a special session of the state Legislature for Nov. 18. Between now and then, the administration and lawmakers are supposed to come up with ideas that will close the gap. Spending cuts and more efficient ways of doing business are expected to be proposed.
Some of the ideas already being floated are leasing state facilities such as bridges and the Thruway to private companies and private management of state-run entities like golf courses and beaches. Operation of the state lottery is already receiving interest in the private sector.
We've asked the question before and now it seems to be more compelling than ever: Where have these people been? If there are ways to be more frugal and efficient with the taxpayers money, why hasn't all this been done years ago?
The answer, of course, is politics. As long as there's enough cash in the kitty and the taxpayers don't squeal too loudly, politicians prefer to run things in house. It allows them to reward their friends and political allies with relatively high-paying, low-effort employment while exerting control over our lives.
It's just that now, the heat is being turned up too high for comfort. State finances are on the verge of collapse and no one wants to be the one to push them over the edge.
Gov. Paterson should be given some credit for at least waking up earlier than most. He was able to get lawmakers to cut money from the budget already and he hopes to do the same next month. He pledges to have his proposed budget for next year submitted a month ahead of schedule in order to get a head start on what promises to be nothing short of a horrendous financial situation for 2009-10.
We have an election coming up in a month. All state lawmakers are up for reelection. Remember, most of these people have been around Albany for a lot of years. They're the ones who have fiddled while Albany burns; only now ready to do what should have been done years, perhaps decades, ago: Run government more efficiently and spend your money as if it were theirs.
They didn't do that. Now we're in a mess. Maybe if things had been done right in the past we wouldn't be facing such a desperate future. Should we reward these people with another two years in office?
Here's a way to whack state government over the head: Vote those who got us into this mess out of office.
Dick Lucinski is the managing editor of the Niagara Gazette. His columns appear on Wednesday and Sunday.
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