Medicaid: The Rest of New York State (Re) Declares War on New York City

After the 1994 election, the one that saw the Republicans take Congress after decades of Democratic dominance, the New York Times published a “portrait of the electorate” based on exit polls. It showed that the 1960s generation was the one most likely to vote Republican that year. “Those hypocrites” I thought. They were “liberals” in their youth when they wanted to get out of serving in Vietnam, and now they are “small government” “conservatives” when they are at their earnings peak and they don’t want to pay taxes, but I’ll bet they’ll be “liberals” again when its time to collect on federal old age benefits. But they surprised me by being even worse than I thought. They still want even more tax cuts for themselves, and even more old age benefits for themselves, such as the Medicare prescription drug benefit. They want to borrow to pay for it. And to ensure our foreign creditors that the money will be paid back by someone else, they also want deep cuts in public services that younger generations need now, and drastic reductions old age benefits — not for themselves but for those to follow them – effective in the future.

With their aging, stagnant populations, the Downstate Suburbs and Upstate New York are now disproportionately occupied by, and almost exclusively represented by, members of Generation Greed. And back in the 1990s I had similar thoughts about their possible upcoming hypocrisy with regard to Medicaid funding, and specifically the local taxpayer share of it. But once again I’ve been surprised, because once again my cynicism was insufficient. They are even worse people than I thought. And it’s past time from them to be called to account for it.

Advertisements

The DeBlasio Budget: Hiding the Facts

What is the most important fact about Mayor DeBlasio’s budget proposal?

http://www1.nyc.gov/site/omb/publications/finplan01-17.page

The unsaid.  During the Bloomberg Administration the “Budget Summary” document had included summary tables that showed how much money was spent on each agency for wages and salaries, how much for pensions, how much for other benefits, how much for interest, how much for lawsuits, how much for other non-personnel costs such as contracts and supplies, and how much of each function is funded by the city, and how much by other layers of government.

Last year DeBlasio provided that table for his budget proposal, but not for past years.  But I was able to make a comparison with that table from prior years and write this post.

https://larrylittlefield.wordpress.com/2016/05/12/new-york-citys-fy-2017-budget-proposal-more-for-those-who-have-more-leaves-less-for-those-who-have-less/

This year DeBlasio has apparently ordered that this information be omitted from the Budget Summary altogether, which is exactly the sort of stuff I fear we can expect from Trump.

Census Education Finance Data for FY 2014 (Compared with FY 2002)

The Census Bureau’s annual education finance data was released for FY 2014 on Friday June 11. The data shows that NYC spent $24,004 per student that year, slightly below the average of the Downstate Suburbs ($25,041) but far higher than the average for New Jersey ($19,636), Connecticut ($19,388), Massachusetts ($16,884) and Maryland ($15,812).   The Northeast Corridor is a generally high wage, high cost of living area. Even adjusting for this, however, New York City’s average adjusted expenditure per student, at $18,764, was nearly 50 percent higher than the U.S. average of $12,625. On an unadjusted basis New York City spent $14,665 per student on instructional (mostly teacher) wages, salaries and benefits alone, or $293,300 per 20 students and $175,980 per 12 students. And this was at a time when the contract for NYC teachers had been expired for years; spending has soared since, as a result of retroactive pay for past years including FY 2014.

One finds the same pattern for Upstate New York. There, spending averaged $19,428 per student in urban counties and $20,490 per student in rural counties. This compares with the U.S. average of $12,625, the Ohio average of $12,907, and the Pennsylvania average of $16,585, and the Vermont average of $20,488. Links to detailed spreadsheets with data for every school district in New York and New Jersey, and per-student revenues and expenditures by category of revenue and expenditure, follow a discussion of where the data comes from and how it was compiled. As is my custom, I’m going to provide the spreadsheets now, think about them for a while, and then provide my analysis and express my opinion. If you want the facts without the opinion, this is the post for you.

New York City’s FY 2017 Budget Proposal: More for Those Who Have More Leaves Less for Those Who Have Less

As noted in my prior post, the current New York City budget documents are being presented in a way that makes it more difficult to compare the proposed level of expenditures, by agency, for FY 2017 with the level of expenditures in the past on a basis that includes the cost of pensions and other fringe benefits.   Press coverage of the budget, therefore, has apparently been limited to the story the Mayor wanted to tell, in the little initiatives and cutbacks the press release chose to highlight. A more complete picture emerges when the latest budget documents are compared with those from past fiscal years, a comparison I made in the tables in this spreadsheet.

Analysis of NYC Budget FY2017

The cost of city government continues to rise relative to the income of city residents, as public employees continue to get richer and richer — relative to those who pay their bills. Richer mostly in the form of increased retirement benefits, benefits which are not appreciated when these employees are working. This pattern, established prior to the DeBlasio Administration, has continued during it, along with an increase in spending concentrated on one of the departments for which NYC spending was already high relative to other places. And the tax increases and service cuts are bound to get worse when there is no longer a stock market bubble and excess profit and compensation on Wall Street to cover it up. A series of charts follows.

State and Local Government Employment: Census Bureau Data for FY 2014 Compared With FY 2002

In 2014 and 2015, I compiled extensive data, and published a bunch of posts, based on Census of Governments data from the U.S. Census Bureau.   One can find that data on this page.

https://larrylittlefield.wordpress.com/the-latest-public-finance-spreadsheets/

While Bureau only conducts a Census of Governments every five years, it conducts surveys of state and local government employment and finances every year. The survey size is generally large enough to produce estimates of the totals for the U.S. and all the states, except for some years when budget cuts prevented the work from being done. This year data for FY 2014 will be made available, and I intend to compile it for comparison with FY 2002.

The first analysis, based on recently-released data on state and local government employment and payroll, is described below. As is my custom, while the spreadsheet with the tables is linked at the end of this post, my analysis and understanding of what it means will be presented in a later post. What I’d like is for people to read the background information presented below, download the spreadsheet, look at the tables, and make up their own minds before reading what I have to say about it.

Bureaucracy: Census of Governments Data

This post will complete my series on different government functions based on finance data from the 2012 Census of Governments, a more long-term analysis aside. It includes data on the most governmental of government functions: the kind of activities one might expect to find taking place in city and town halls, county seats, county courthouses, and state capitals. Reviewing applications, keeping records and doing inspections, rather than providing services. The functions included are, as delineated by the U.S. Census Bureau, Judicial and Legal, Financial Administration, Inspection & Regulation, Central Staff, General Public Buildings and, at the state level, Social Insurance Administration (state Departments of Labor). I have grouped them under the title “Bureaucracy.”

When I first started compiling Governments Division data from the Census of Governments, I noted that the cost of New York’s state and local government bureaucracy per $1,000 of state residents’ personal income was about average. So was its bureaucratic employment level per 100,000 residents. In addition the cost and employment level of local government bureaucracy was about the same in different parts of New York State, broadly defined. All that made it much less interesting. There are some differences, however, and in any event I want this compilation to be comprehensive. And besides, if you add them all up at both the state and local level the cost of these government functions is substantial. In New York State it averages about 1.7% of all of the personal income of all state residents not including, in many cases, employee benefits and pensions. A brief discussion follows.