BUDGET ISSUES IN NEW YORK STATE - Speech or Presentation Example

Download file to see previous pages... One of the major issues that had an impact on the New York Budget was the reforms done on the sales tax in 2010. According to the New York State Senate Committee on Budget and Tax Reforms, the sales tax was not effective in keeping pace with the technological changes as well as economic development. One of the notable aspects of the sales tax was that there was large amount of uncollected revenue thus affecting the state budget in terms of increased deficit. For example, according to Scott Peterson a member of the streamlined sales tax governing board, in 2011 New York budget experienced a deficit of $1,518 million based on the uncollected sales tax amounting to $1,415.3million. This resulted to the establishment of public roundtable that was aimed at discussing the sales tax. Thus the sales budget collection process was streamlined leading to reduction in the budget deficit. According to the Senate Select Committee that was formed by the Senate, the sales tax legislation that was passed in 1965, was being affected by the technological, political and economical trends. For example, the committee indicated that the economy was changing to service from industrial based economy. Additionally, there has been an increase in the tax credits as well as sales tax exemption over the years. Thus, there has been no significant growth on the revenue thus affecting the government expenditure. Another notable issue on the sales tax bill that was passed by then governor Nelson Rockefeller was that internet services as well as mail order were major areas where sales tax remained uncollected. This had a negative impact on the state budget in the sense that despite the increased government expenditure, there were no effective mechanisms of tax collection. Based on the impact of the trends in the technology, economy and politics in the form of undermining the fiscal position of the state of New York, Krueger, the leader of the Select Committee, arranged for a meeting with other stakeholders to discuss on how the fiscal stability of the state would be enhanced by establishing a proper sales tax policy which was more rational and economical. This included modernizing the sales tax system. After the meeting to improve the collection and use of the sales tax for improvement of public activities, the committee recommended the use of Streamlined Sales and Use Tax Agreement (SSUTA). This entailed rules that the government authorities would adopt during the collection of sales tax from the urban and local sellers. One of the key aspects that led to the success of the roundtable meeting to solve the sales tax crises that was held in Albany, was the involvement of various stakeholders. For example, the committee took into consideration the ideas from eleven tax experts from various industries. Thus, the experts provided resourceful technical contributions to the select committee thus making the whole process a success. Fixation of New York broken budget process The second issues that affected the budgeting process were the reforms that were initiated by Senator Krueger to fix the New York broken budget process in 2010. Krueger aim was to make comprehensive reforms ...Download file to see next pagesRead More