Sooner or later New York State’s budget will come crashing down. Looks like it might be sooner.

Our illustrious, philandering governor (no, not Spitzer who was dumb enough to pay for sex, but Paterson, who gets his illicit sex for free)… will have a live televised address later today to announce the Empire State is running out of money–fast. We’re already down $700 million this year and the bleeding continues. The gov predicts if things continue this way, we’ll have a $21 billion “gap” over the next three years. Why? Supposedly because the brainiacs in Albany who estimate to the dime how much money will come through the door (so they can spend all of it plus more), didn’t count on Wall Street taking a nose dive.

In New York, we tax not only our citizens nigh unto death, we also tax Wall Street down to the last penny of a dividend. So when Wall Street sneezes as it has been doing for some time, our state coffers catch pneumonia.

If there is any small glimmer of hope, it is that Paterson realizes raising taxes will not fix this situation. According to today’s Press & Sun-Bulletin:

In the unusual move of a statewide address, Paterson is expected to call for spending cuts and belt tightening in the 2008-09 budget, which runs until March 31. Job cuts and pullbacks in state services are also on the table, aides said. (Paterson to speak on budget crisis)

The thing I don’t see in that short list is the REAL reason we’re in a state of disaster with our finances here in New York: Medicaid. I’ve written about this before (see The High Cost of Doing Business in New York and Medicaid). If I might so bold as to quote my earlier post:

Here’s the sad facts about New York’s Medicaid program and why I say it’s sinking us and sinking us fast: New York ranks #1 in both per capita spending and total spending for Medicaid of all the 50 states. You read that right, #1. We spend more money on Medicaid than either California or Texas, and they have larger populations!

In 2006, New York State spent $44.7 BILLION on Medicaid. Is that obscene or what? If you break it down per capita, we spent $2,316 for every man, woman and child in this state to fund health care for Medicaid recipients. Last year California spent $939 per capita, and Texas spent $771 per capita.

Our out-of-control spending on Medicaid must stop and it must stop NOW. Only then will we get a handle on our fiscal house.

My solution? Simple. Cap Medicaid spending to $1,000 per capita. That seems more than reasonable to me. It would have the instant effect of reducing the state budget by $23 billion, more than enough to offset the current budget “shortfall” in revenue of $700 million, and take care of the predicted shortfall of $21 billion over the next three years, plus give us a surplus for a rainy day.

Fat chance the pols in Albany will take my advice! They derive their power by keeping people (voters) dependent on them for handouts, rather empowering them to afford their own insurance by creating a climate in this state where businesses flourish and reward workers with insurance and other benefits. That’s why we continue to stagnate and wallow in the mess that is New York: socialism.

Technorati Tags: New York State budget, David Paterson, fiscal crisis, Medicaid, Wall Street revenue, Albany spending, New York legislature, socialism