On January 8, 2003, Governor Pataki opened the 2003 State Legislative Session with his annual State of the State address to a Joint Session of the New York State Assembly and the State Senate. While the speech focused primarily on calls for unity and bipartisanship in order to deal with the economic fallout from the national recession and the September 11 attacks, the Governor did make several references to health care spending issues that are of concern to GNYHA members.

The Governor called upon the State Legislature to work with him to strengthen and renew the Health Care Reform Act (HCRA) and to continue reform efforts to lower the costs of Medicaid and other government programs. He also warned that, with the exception of public security, no sector of the budget would be exempt from reductions in spending. Details of any proposals will be included in the Governor's Executive Budget proposal, which will be released in the next several weeks. In the meantime, GNYHA will monitor these issues closely and will vigorously oppose any efforts to reduce Medicaid benefits or provider payments. County officials from around the State, including the City of New York, have called upon the State to take over the local share of Medicaid or to take actions to reduce the cost of the program to county governments.

In addition to these health care spending issues, the Governor announced plans to build on the State's high-tech and biotechnology economic development efforts by expanding New York's Centers for Excellence initiative. This effort, designed to encourage the development of high-tech industries and now moving forward in several upstate communities and on Long Island, will be expanded to include Westchester County and New York City. Several academic medical centers that are members of GNYHA will be part of this expanded effort.

Governor Pataki also announced the creation of a new State Office of Disaster Preparedness and Response, to enhance the State's preparedness efforts for possible future terrorist attacks or natural disasters. The new office will coordinate the efforts of State agencies, local governments, and the private sector. Jim Natoli, currently Director of State Operations, will direct the new office.