New York News

NATIONAL FEDERATION OF INDEPENDENT BUSINESS ♦ ONE COMMERCE PLAZA, SUITE 803 ♦ ALBANY, NY 12260 ♦ 518/434-1262 ♦ FAX: 518/426-8799

FOR IMMEDIATE RELEASE: CONTACT: Mike Elmendorf (518) 434-1262

Mike Diegel (202) 314-2004

Broad Business Coalition to Legislature:

NO Borrowing to Balance Budget
Albany, May 25, 2010– The following is the text of a letter transmitted today to the Legislature
from a broad coalition of business organizations, organized by NFIB, opposing the concept of
borrowing to pay state operating expenses.

Dear Members of the Legislature:

As leaders of New York’s business community, representing employers and job creators from all
corners of our state and virtually every facet of the private sector economy, we write to urge you
to oppose borrowing to fund operating expenses as a means to close New York’s daunting budget
deficit.

Increasing state borrowing to cover New York’s operating expenses is like taking out a cash
advance on one credit card to pay off another. It only enables the state to continue spending more
than we have instead of making the tough decisions that the current crisis demands. Isn’t that
exactly what got us into this situation in the first place?

This is not an unforeseen crisis that requires a quick loan to get us through a difficult time. New
York’s dire fiscal condition--with deficits projected to exceed $60 billion--has been years in the
making. Unsustainable spending increases, coupled with a crushing tax burden to try to pay for it,
have left both our state budget and our economy in shambles. Adding more state debt for
operating expenses will dig that hole deeper. It will not only add to the state’s already significant
debt, but will likely undermine the state’s credit rating in the process, increasing the cost of our
debt load. This will worsen the state’s fiscal condition over the long term and as a result only
heighten the drumbeat for even higher taxes and fees.

Some of the proposals advanced by Lieutenant Governor Ravitch have potential, particularly
increasing accountability and transparency in the state budgeting process and the institution of an
oversight board to control spending at the state level. These suggestions merit serious
consideration. More borrowing, however, is not a solution. Rather, it will compound the state’s
problems and sets a very dangerous precedent.

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Business owners know this much: You can’t spend more than you take in. If you can’t pay your
bills and have run out of cash, nobody is lining up to bail you out and give you a loan. It is time
for state government to start living with that same reality. That means cutting spending,
fundamentally reforming our budget process, and making New York more affordable so
businesses can survive, create jobs and turn this economy around.

We oppose borrowing to pay for state operating expenses, and strongly urge you to do the same.

Very truly yours,

Kenneth L. Adams, President & CEO Michael J. Elmendorf II, State Director
The Business Council of New York NFIB/New York

Dean E. Norton, President William M. Mooney, President

New York Farm Bureau Westchester County Association

Rita Ferris, President John Mitchell, President

Northeastern Retail Lumber Association Northeast Ag and Feed Alliance

Steve VanVoorhis, President

New York Corn Growers Association

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NFIB is the nation’s leading small business association, with offices in Washington, D.C. and all 50 state capitals. Founded in 1943 as a nonprofit,
nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business.
NFIB’s powerful network of grassroots activists send their views directly to state and federal lawmakers through our unique member-only ballot,
thus playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of our members to
own, operate and grow their businesses.