A politician from northern New York is on a mission to revive the concept of ‘Department of Government Efficiency,’ first introduced by the Trump administration, within the context of his home state. He envisions this as a potential remedy to plug the current budget deficit of approximately $750 million that the state faces. State Senator Mark C. Walczyk, based in R-Sackets Harbor and a prominent voice in the Republican Party, has championed a bill within the state legislature with the intention to form a ‘New York state commission on government efficiency.’
This legislative proposal was presented back in February. Despite its brevity, the seven core paragraphs of the proposal encapsulate a comprehensive, novel plan for a state commission. The cardinal philosophy of this commission echoes the principles of frugality and fiscal prudence, primarily targeting ‘unnecessary and wasteful spending’ within the state’s financial machinery. The commission is empowered to evaluate, identify and propose the removal of redundancies from the state’s expenditure.
In terms of its structure, eight members would comprise the proposed commission. The Senate majority and minority leaders would each appoint two members, mirrored by the Assembly speaker and the minority leader who would also appoint two members each. Those appointed would serve a term spanning the duration of two years without remuneration.
One principal responsibility of this commission entails the generation of annual reports following an initial report to be produced within the first year of its inception. These comprehensive reports include meticulous evaluations of state finances. These would subsequently be presented to the Governor, the Senate President Pro Tempore, and the Assembly Speaker.
Senator Walczyk posits the budget deficit in the context of the modifications to federal regulations concerning Medicaid and means by which states can finance their subsidized healthcare schemes. He articulates a narrative that suggests the budget deficit is merely the manifestation of the deeper malaises of wasteful expenditure, fraudulent practices, and abuse inherent in the state’s budget, valued at more than a quarter billion dollars.
Taking a broader perspective on the fiscal situation of the state, Walczyk inquires, ‘Instead of hastily finding ways to fill a $750 million gap, why did we land in this predicament to begin with?’ The financial plight of the state, in his opinion, does not stem from policies enacted at the federal level by Congress and President Trump, but rather originates from a bloated budget and a corrupted process that fails to align with the genuine requirements of the residents of New York.
Asserting his proposal as the panacea, Walczyk affirms that the comprehensive review of spending facilitated by the commission could result in billions of dollars in savings. Further, he views it as an essential instrument for introducing checks on the state budget that, according to him, was passed in haste without due transparency. ‘Assessing state expenditure and informing taxpayers of the utilization of their funds can effectively bridge the financial void,’ he states.
Walczyk draws attention to the New York Empire State Film Tax Credit program as a representation of fiscal extravagance, a sentiment shared by other fiscal conservatives. The credit is intended for film and television productions taking place within the state. Governor Kathleen C. Hochul earmarked a substantial $800 million for this program within the current fiscal year, with over $7.7 billion in tax deductions dispersed over the last 11 years.
Defenders of the program argue that it provides a net benefit to state and local tax revenues. For every $1 allocated in state incentives, approximately $1.70 is claimed to return to state and local government tax collections. TV and production groups, largely based in the lower half of the state, point towards an observed increase in the quantity of project activity within the state. The upswing in production activity infuses life into local economies, bringing jobs and fostering long-term investment.
According to projections from the Motion Picture Association, each day of major television or movie production can inject as much as $1.3 million into the local economy. However, Walczyk refers to an external analysis, sponsored by the state, which challenges the rosy picture these statistics portray. The study, which factored in the tax credits offered for film production, found that for every dollar of public money invested, only 15 cents was generated in taxable revenue.
A deeper dive into the analysis, accounting for indirect jobs — positions projected to be created in tandem with the production project — paints a slightly better picture, but still not a sufficiently profitable one. Even considering these indirect job creations, the analysis finds that the generated revenue only amounts to 31 cents on every dollar of public investment.
Fiscal conservativism voiced by Walczyk extends beyond this specific example of the film tax credit. He critiques other significant budgetary allocations, such as a $1 billion investment in the state’s energy research authority to fulfill climate objectives, as well as a $2 billion plan for rebate checks. ‘It’s politically convenient to blame the situation in Washington, but it’s time for introspection. The time for a New York COGE is ripe,’ he states.