Posted on 11/12/2009 9:38:52 AM PST by neverdem
New York State is facing its worst economic crisis in decades - with projected annual budget gaps rising to more than $19.5 billion over the next four years. The challenge is to use this crisis to make New York stronger than ever, as we did during the New York City fiscal crisis in the 1970s, a rescue effort in which I was heavily involved.
To do that, the state must approach the current situation more like a business. When confronted with a financial crisis, a responsible business focuses on its customers: What does the customer need? How can we provide it more cost-effectively?
That's the opposite of how government thinks. Elected officials typically focus not on the customer but on those groups that helped put them in power - many of whom are often representatives of public employees and service providers, who benefit from increased government spending. As a result, an education bill is really a teachers bill; a health care bill is a bill supported by the hospitals and health care workers.
That's why state operating fund spending has increased at an average annual rate of 5.4% since 1985, exceeding both inflation and personal income growth over that period.
I saw the problem firsthand when I was chairman of the New York State Commission on Health Care Facilities in the 21st Century, created by Gov. George Pataki in 2005. More and more hospitals were going bankrupt; those that were closing were not necessarily the ones that should have closed, based on patient need. The commission was charged with recommending ways to make the system economically healthy.
We found that the average utilization of licensed hospital beds in New York was just 65%, and the average patient stay well exceeded national norms. The numbers have changed since then, but the gap is the same and the reality remains: The state spreads its funding too thinly and thereby deprives essential institutions of crucial resources.
The commission's recommendations, made in 2006, included closing certain hospitals and reallocating services so that the remaining hospitals were strengthened. That process must now be continued - we still have 20% overcapacity - and expanded to the other two key areas of state spending: education and personnel compensation.
In all three areas, projections of state spending are unsustainable. According to the Citizens Budget Commission, Medicaid spending will grow by 37% in the next three years, despite Medicaid costs per beneficiary in New York that are already 67% higher than the national average. State education aid to local school districts has more than doubled in 10 years, with increases of an additional 22% planned over the next three years, despite the fact that New York already spends 65% more than the national average per pupil. Expenses for compensation of state employees are expected to grow by 21% in three years, despite the financial struggles of New York taxpayers.
What New York has created are spending engines that are simply not supportable. The recession accelerates that reality.
Gov. Paterson should appoint three statewide commissions to explore fundamental realignment of each of these three budget areas. The goals should be improved performance, cost-effectiveness and fairness.
Commission members should report back by this time next year, and their recommendations should become law unless outright rejected by the Legislature. That's the only way to make real reform politically palatable.
Paterson has been working to establish his legacy between now and the next election. There's no more important one than this.
How does someone write about excess hospital beds when we live in an age of terrorism and pandemics? What are we supposed to do without the beds if we need them? Other than that, I don't have a problem with the recommendations.
The pandemic scare hasn't panned out yet, even after all these years of scares. And why can't you create an emergency fund to buy beds whe/if there is a terror attack?
Why live in fear of "what might be" all the time? There will always be some kind of potential emergency. You don't necessarily have to build each one into the budget. If you go down that road (and we already have), political vested interests will make sure that public fear is sustained so they can keep getting their kickbacks.
appoint three statewide commissions
LOL
Of course!
And these commissions will spend no money, cost nothing and will as if by magic return the state to fiscal bliss.
Yah..let me know how that works...you are just adding three more fiddlers to watch Rome burn....
Lawsuit Derails Nassau NY Handgun Ban
Is It Possible the Wrong Guy Was Sworn In on NY-23?
FReepmail me if you want on or off my New York ping list.
And where are you putting these beds when the hospital is closed? Fort Hood's hospital couldn't handle all of the casualties.
Why live in fear of "what might be" all the time? There will always be some kind of potential emergency. You don't necessarily have to build each one into the budget.
This isn't peace time. Our White House looks very weak. NY has been the target in a number of attacks and many other plots.
This is also a bean counter wanting to close entire hospitals because of an ideal bed utilization rate is not being met. Besides the medical effects on patients in rural areas and the economic impacts on rural areas with hospitals which may be the main employers in those areas, do you really want a bean counter in Albany making those decisions? If a hospital is too far away, it may as well be in Timbuktu.
No matter what you read in the media the NY financial crisis is much worse than anyone can imagine. My Assemblywoman (a Democrat) recently told me that in a few months the state is going to have to make “terrifying decisions that will affect every New Yorker” (except the corrupt politicians in Albany-like her, I assume).
Privatize everything through competitive bidding.
Appoint commissions, my *ss.
Fire 1/3 of the parasites, oops I meant state “workers.”
SCHOOLS folks have increased their budgets many, many times over....its the govt workers who get the big money and the safe jobs and the medical for free and the big pensions...
but lets go after the $10 an hour housekeeper who works weekends and holidays..
until the school budges..the it follow the teacher budgets.....come into line with reality and the rest of the lowly peasant workers, then no state budget will ever be quite enough...
“school budgets” but school budges is pretty descriptive too..LOL
“Commission members should report back by this time NEXT year...”
‘NEXT’ year?!
More stalling by Rats
This is BS!!! CUT GOVT SPENDING - NOW!!!!!!!
Thanks for the ping!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.