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Struggle over N.Y. budget cuts is microcosm of national cuts

By G. Dunkel

Julia Martinez and Margaret Espinosa got pink slips this month. Their job, which pays $20,000 a year, is to help disabled children go to school. During the Sept. 11, 2001, attacks on the World Trade Center, as debris rained down, they pushed the children in their wheelchairs as far as possible, then carried them on their backs and ran. They and the children survived.

Martinez and Espinosa are two of 1,800 workers who New York City Schools Chan cellor Joel Klein fired this month. They join tens of thousands who have been laid off from education, health care, sanitation and other public services all over the country in the past two years.

According to the National Governors' Association, every single state is suffering from a major budget crisis. The shortfall for fiscal year 2003, which in most states ends in July, is expected to be about $30 billion. The shortfall for 2004 is projected to be $82 billion.

The drop in states' revenue has been major. While the Bush administration justifies its huge tax cuts for the wealthiest by promoting the illusion that jobs will "trickle down" to the poor and unemployed, it is pushing major increases in the cost of Medicaid, education testing and security on the states. The states in turn push the cuts and costs down to the cities and towns.

In the 1990s, states tried lowering their tax rates to encourage investment and economic development during boom times. From 1995 to 2001, states cut taxes by $33.1 billion, which is slightly more than their current deficit.

New York Gov. George Pataki proposed cuts in education and aid to New York City to close a $11.5 billion hole in his budget. Michael Bloomberg, the billionaire mayor, raised real-estate taxes 18.5 percent. This wasn't enough to close the gap, so he threatened to lay off 30,000 workers for starters and also impose major cuts in other expenses, including education.

Pataki's cuts to education, while harsh for the city, would have been devastating to poor rural areas of the state.

So the New York State United Teachers, a joint council that includes all the local affiliates of both teachers' unions, the American Federation of Teachers and the National Education Assoc., held a rally May 3 in Albany. It was the biggest demon stration in the state capital's history.

Fifty thousand union members and their supporters protested. Joining them were a number of other education-related organizations, like Parent-Teacher Asso ciations, student governments and community organizations.

A few days after the protest, the state legislature decided to override Pataki's budget and restore most of the education cuts and aid to New York City.

About two-thirds of the tax increases they passed will come from a surcharge on incomes over $150,000, with the rest coming from an increase in sales taxes.

This was the second, and biggest, union-led demonstration against financial austerity in New York this century. Given the nationwide climate of budget cutbacks, there should be many more.

Reprinted from the May 22, 2003, issue of Workers World newspaper

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