[NYAPRS Enews] Reuters: Paterson May Order Larger Budget Cuts

[Matt Canuteson]

NY Governor May Order Larger Budget Cuts: Report

Reuters July 28, 2008

NEW YORK (Reuters) - New York Gov. David Paterson could order additional
spending cuts to deal with mounting state deficits as Wall
Street-related revenues decline, the New York Post reported on Monday.

The Democratic governor is expected to deliver a special address about
the deteriorating state of the New York economy as soon as Tuesday,
according to the Post.

On Monday, Paterson was scheduled to attend the state financial control
board's meeting, which will delve into New York City's finances.

Paterson last week said Wall Street bonuses could be cut 20 percent this
year, estimating that each 10 percent reduction in bonus pay costs the
state $350 million in tax revenues.

Predicting the state could lose an estimated $1.7 billion from slumping
profits for financial firms, the governor forecast severe state budget
cuts.

The Post said Paterson may ask state agencies to slash spending beyond
the 3.3 percent cut he ordered last spring. The current state budget
totals about $122 billion.

The governor may also call a special session of the Legislature to
propose reducing some of the spending that was approved as part of the
state's new budget in April, the newspaper said.

http://www.reuters.com/article/politicsNews/idUSN2847541420080728

________________________________________________________________________
_______________________________________

 

 

Gov. Paterson Will Address New Yorkers On Economy

By James T. Madore Newsday July 28, 2008

 

Worried about shrinking state revenue due to the economic downturn, Gov.
David A. Paterson plans Tuesday to outline remedial actions in a
televised address to residents.

 

"Because of the severity of the situation like this, I want to talk to
New Yorkers personally," the governor said Monday after a meeting the
New York City financial control board.

 

"We don't have to panic," he added. "There are ways we can respond and
we're going to have to respond immediately."

 

Paterson refused to directly answer reporters' questions about whether
the state's current $122 billion budget would have to revised. Last
month, he said he thought the spending plan for 2008-09 would hold up,
but that cuts would be needed next year to wipe out a projected deficit
of $5 billion.

 

Paterson also declined to say whether he would reconvene the legislature
in emergency session to tackle spending. However, he repeated his
criticism that lawmakers don't fully grasp the seriousness of the
economic downturn.

 

Paterson's spokeswoman Risa Heller said the governor's speech would be
broadcast live Tuesday at 5:10 p.m. She said he would "talk about the
state's economic crisis."

 

Paterson called for lawmakers to adopt budget practices similar to those
of the city, which socked away $6 billion over the past seven years in a
rainy day fund. That money is helping the city weather a loss of $1
billion in revenue since May.

 

Paterson and others praised Mayor Michael Bloomberg for his "prudent"
stewardship of the city's finances. The mayor estimated the city would
face a deficit of $7.3 billion in the 2010 fiscal year, $5.2 billion in
2011 and $5.8 billion in 2012.

 

"We don't have that cushion the city has," Paterson said, referring to
the state's meager rainy-day fund. His decision to make a televised
speech was first reported by the New York Post.

 

He added, "This is serious enough and I would like to address the public
. . . see you tomorrow night."

http://www.newsday.com/news/local/state/ny-stpate0729,0,7912617.story

 

________________________________________________________________________
_______________________________________

 

 

Paterson Schedules TV Broadcast To Address State's Economic Issues

The Business Review July 28, 2008

 

Gov. David Paterson will deliver a special address on the state's
economy on Tuesday that will be broadcast around the state. 

Starting just after 5 p.m., Paterson is expected to update the state's
fiscal status. He could also announce a decision to call the state
Legislature into special session to address possible spending cuts ahead
of the November elections. 

"There is no secret that this is serious enough that I would like to
address the public directly on this. Therefore, there will be no
confusion about the gravity of the situation," Paterson said Monday at a
press availability in New York City, according to a transcript provided
by his press secretary. 

WMHT/Channel 17, the public TV station serving the Albany, N.Y., market,
will start its pre-speech coverage at 5 p.m., followed by a live
telecast of Paterson's speech at 5:10 p.m. Paterson will give the speech
from a room in the governor's wing of offices inside the state Capitol. 

After the speech, host Susan Arbetter and her guests will give reaction
and analysis. WMHT will then rebroadcast the speech at 9 p.m. 

http://www.bizjournals.com/albany/stories/2008/07/28/daily8.html?t=print
able

 

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://kilakwa.net/pipermail/nyaprs_kilakwa.net/attachments/20080729/be09d0a1/attachment.html>