Editorial: State needs to put brakes on borrowing

You don't need a degree in economics to figure out that if you spend more money than you take in you're going to end up in the hole. Apparently that doesn't bother New York state leaders.

They need to put the brakes on borrowing. Instead of looking for ways to increase spending, leaders need to start looking for places to cut.

Now, despite a projected decline in tax revenue that could result in a $4.3 billion budget deficit next year, state officials want to borrow even more.

* On Monday, Spitzer suggested borrowing tens of millions of dollars to hand out to legislators in the Senate and Assembly minorities for projects in their districts.

* On Tuesday, state Transportation Commissioner Astrid C. Glynn proposed borrowing $175.2 billion more over 20 years for repair and replacement of bridges, highways, rail and air facilities statewide. Spitzer and the Legislature would need to approve the plan, which the governor has said could help attract and retain businesses while spurring local economies.

New Yorkers are being hoodwinked by tax rebates and other feel-good handouts disguised as "economic development" incentives while state leaders dig us deeper into debt. Meanwhile, the state debt continues to grow to a mind-boggling rate. At last tally, that debt stood near a record $50 billion, or about $3,515 for every adult New Yorker. Last year, the Citizens Budget Commission, an independent watchdog group, warned that such record debt places New York in the "danger zone," which is based on the states' ability to afford the debt. The only state in worse shape than New York is Massachusetts.

Add to that a slumping housing market, rising oil prices nudging $100 a barrel, an erratic Wall Street (as much as 20 percent of the state's revenue comes from here), and other bleak economic indicators that some fear could trigger a recession.

This past week, state Comptroller Thomas DiNapoli said budget forecasts show that the state's income will grow in the next few fiscal years, but not as fast as spending. The Senate Republican majority, meanwhile, estimates that revenues in the 2008-09 fiscal year beginning April 1 will be $246 million less than Spitzer's September estimate.

And don't forget the estimated $200 million in tax revenue Spitzer was planning to get from collecting taxes on Indian gasoline and tobacco sales by Indians to non-Indians until he reneged on the promise.

The bottom line: A big RED one.

The governor and legislative leaders are now beginning to craft the 2008-09 budget that promises a new, more open process. Tell them that instead of borrowing more money, they should do what's fiscally responsible and look for ways to cut.

We can pretend it all doesn't matter - nobody understands those big numbers anyway, right? - but in the end, the economic condition of this state will ultimately be what draws business and people here. Or drives them away.