Posted on 10/07/2009 12:14:08 AM PDT by neverdem
Gov. David A. Paterson took a step on Tuesday toward plugging an expected $3 billion budget deficit and ordered state agencies to cut $500 million from their expenses.
The move will represent a decrease of approximately 11 percent in the agencies’ nonlabor costs like travel, vehicles, equipment and postage, the governor’s office said. The new cuts come on top of $1 billion in spending reductions the governor ordered for the last budget cycle.
Taken together, the two rounds of cuts will result in combined, recurring savings of $1.5 billion, the governor’s office said.
The action by the governor’s office probably represents only a fraction of the budget trimming that will have to be done in the coming months. Mr. Paterson has warned that the budget deficit is expected to grow before the start of the next fiscal year, April 1, to at least $3 billion because of falling tax revenue.
“While agencies have already taken significant action to reduce spending since I took office, further cuts are necessary given the state’s persistent fiscal difficulties,” Mr. Paterson said in a statement announcing the cuts. “These agency spending reductions, however, only represent a first step. I look forward to working cooperatively with the Legislature to enact additional savings and close our current-year deficit.”
Mr. Paterson announced on Monday that income tax revenue collected by the state dropped 36 percent compared with that collected in the same period two years ago.
Mr. Paterson had planned to call the State Legislature back into session at the end of last month to help make the cuts needed to help solve the projected deficit. But legislators, notably Assembly Speaker Sheldon Silver, balked. Now the governor has said he will work with legislative leaders to reach an agreement before he calls them back to Albany...
(Excerpt) Read more at cityroom.blogs.nytimes.com ...
A liberal northern democrat cutting budgets by (GASP) cutting spending? I thought the day may never come.
“Mr. Paterson has warned that the budget deficit is expected to grow ....... to at least $3 billion because of falling tax revenue.”
Hope and change in action. Kinda warms the heart.
Hmmmmm. Quit giving away money to those who won’t help themselves. Who knew that would work? Its getting really hard to pull the cart ain’t it folks?
He isn’t an ideologue liberal democrat, like a lot of them are. I actually have a tiny bit of respect for this guy and like him better than the likes of Spitzer who is just like Nancy Pelosi. And this is why Obama was into throwing him under the bus.
I’d rather have Pataki back, or maybe Rudy instead, but I’m glad that Paterson isn’t just another Obama/Pelosi puppet.
NO, no! You need to spend your way out of the deficit!
How’s that chasing the high income workers out of state working for you now?
Not to worry. Governor P is expecting the imminent arrival of a fleet of C47s bringing cargo. John Frum assured him that it would happen.
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