Gov. Andrew Cuomo's latest budget seems to have pleased a lot of people, but not local governments. Although the economy is improving, local tax revenues are still depressed. Although the country has added a net of over 4 million new jobs since the bottom of the Great Recession, the private sector has added 5.1 million, while the public sector has actually decreased by 764,000. Unfortunately, the lost public sector jobs are not the faceless federal bureaucrats conservatives dislike, but mostly local cops, teachers, librarians, firefighters, road repairers.

Here in New York state, the private sector has gained about 380,000 new jobs but the public sector has lost over 20,000. Virtually all of those lost jobs are direct service workers. Over half of New York's counties and big cities are talking about additional layoffs even as the economy as a whole improves.

How can a state save these critical jobs and protect these vital services? In this environment, some would say that raising income taxes, property taxes or sales taxes is political suicide. But a careful reading of the polls and trends indicates that the public will accept some tax increases. The key is to link the tax increase to a specific service the public wants and needs. The best place to do this is at the local level where people can see improved roads, more teachers or cops, or longer library hours, things that improve their daily lives. But local politicians are also reluctant to ask their constituents for more funds, even though the public trusts local officials to be more responsible with their money than higher level politicians.

We propose a new approach. Virtually all economists support increases in the gasoline tax. Since we import too much foreign oil, a tax on the consumption of gasoline would help the country's balance of trade deficit, a deficit perhaps more damaging to the nation's economic health than the government's budget deficit. In addition, environmentalists recognize the value of increased gasoline taxes on climate change. A phased-in increase in gasoline taxes would enable drivers to adjust when they purchase a new car, an event that which happens about every five years.

We propose the state legislate a 50-cent increase over five years – a dime a year. And, unlike other gas tax proposals, we propose that the state return every penny of the tax to the county or big city in which it was paid, no strings attached. They could then use the funds as they deem necessary — for teachers, cops, longer library hours, or even for a rebate or property tax reduction. Any way they want. And the state could not "squander" the proceeds.

This tax would be enough to save thousands of local jobs and return several counties and cities to solvency. In New York City alone it would raise between $250 and $500 million per year. That's real money.

Would some counties do better or worse than others? Perhaps. But all would benefit.

Ideally. either all states would enact such a policy, or the federal government would institute it. A federal tax would eliminate the problem of cross-state sales.

Hey, if you're going to dream, dream big. Our years in government lead us to believe that even in this no-tax environment, this has a possibility of gaining some traction.

New York should take the lead. Let the rest of the nation follow.

Lucius Riccio teaches at Columbia University and is a former New York city transportation commissioner. Dan Feldman teaches at John Jay College, for 18 years served as a member of the state Assembly, and co-authored "Tales from the Sausage Factory: Making Laws in New York State."