Cuomo plan for local borrowing criticized

ALBANY -- Syracuse Mayor Stephanie Miner, co-chairwoman of the state Democratic Party, criticized Gov. Andrew M. Cuomo's proposal to ease the fiscal crisis affecting local governments by borrowing money to help cover their operating costs.

In his state budget address this week, Cuomo, also a Democrat, proposed legislation to allow local governments to borrow against anticipated savings in the state's new pension plan.

"You are talking about what is going to happen in 10 years, 25 years from now . . . and you are pinning all these things on assumptions," Miner said in an interview yesterday. "When you pin your plans on assumptions on fiscal conditions, inevitably you see more bad things than good."

It was a rare public criticism of Cuomo by politicians of either major party.

Cuomo appointed Miner co-chairwoman of the state party last year. Miner said forcing a "robust debate" is her responsibility as mayor.

Even Cuomo, in his 2010 campaign plan for pension and fiscal reform, said he "would not support borrowing to fund operating expenses." He called it "pushing today's problems down the road and making future taxpayers pay for today's mistakes."

Cuomo last week sought a "unified" agenda and message from all levels of government during a teleconference with Democratic leaders and officials statewide, according to the Capital online news organization.

Many cities and counties upstate and on Long Island, however, have been in crisis and approaching insolvency for years because of rising government costs and declining tax bases and populations.

Miner and other local officials blame much of the crisis on state mandates such as pension benefits and costs set in Albany and pushed by politically powerful public worker unions.

Cuomo said Tuesday he hopes local governments will be allowed to borrow against the state's new Tier VI pension plan, which has lower benefits for future state and local government hires and is expected to save billions of dollars over 30 years. The plan doesn't reduce government contributions to current pensioners or current workers when they retire.

Cuomo also said this week that municipalities need to cut spending to attack the fiscal crisis, much like he did in state government. He said local governments can't rely on the state for bailouts or to take on local costs.