Paterson: Mandates need review for property tax impact

BY JAMES T. MADORE | james.madore@newsday.com

11:35 PM EDT, April 27, 2009

Gov. David A. Paterson Monday ordered that mandates from his office and state agencies be reviewed for their impact on property taxes before being approved.

He also vowed to veto bills that don't include state money to pay for their requirements. He said both moves will help rein in surging property taxes in New York, which are the nation's highest.

The executive order, announced outside a home in this Albany suburb, is the first of several steps by Paterson to aid hard-pressed homeowners. He said he would push for a 4 percent cap on school taxes, an initiative that passed the State Senate last year but died in the Assembly.

"Seventy-four percent of the people polled say they want a cap on property taxes and our government in Albany continues to ignore them," he said. "We can't allow this . . . I'm not going to sign any legislation that I think has an undue impact on counties, local governments or taxpayers." Paterson also shot down an alternative to capping property taxes: a circuit breaker that directs tax relief to low- and middle-income homeowners. The circuit breaker doesn't slow the growth of taxes and is too expensive, he said.

"We need to either cap the property taxes or some creative way that doesn't spend money," Paterson said.

The circuit breaker, which has twice been adopted by the Assembly, would cost about $4 billion a year, according to one proposal. It is backed by the powerful New York State United Teachers and progressive groups that oppose the cap.

Assembly Speaker Sheldon Silver (D- Manhattan) responded to the governor, saying, "In this difficult budget climate, there must be forbearance but the circuit breaker should be the direction we take."

Paterson also ruled out restoring STAR property-tax rebate checks, which were eliminated in this year's budget. He said the program misled homeowners into thinking they were being helped by a government that keeps raising taxes. "It's like robbing someone and leaving them a dollar to get home."