[NYAPRS Enews] Newsday: Paterson Highlights Possible Education Cuts

[Matt Canuteson]

Paterson Rules Out Borrowing To Close Budget Deficit

BY JAMES T. MADORE Newsday  November 4, 2008

ALBANY - Gov. David A. Paterson
<http://www.newsday.com/topic/politics/david-a.-paterson-PEPLT005080.top
ic>  yesterday ruled out taking on more debt to close a $14-billion
deficit in the state budget through next year.

Speaking to a radio audience, Paterson implored lawmakers to rein in
spending rather than increase borrowing, and rely on one-time revenue
generators and other gimmicks used to close past deficits. New York
<http://www.newsday.com/topic/us/new-york-PLGEO100100800000000.topic>
will pay $5.2 billion in interest this year on debts of $52.5 billion,
which also nearly equal state revenue.

"Borrowing our way out of this crisis is off the table," Paterson said,
referring to a projected deficit of $47 billion over the next 3 1/2
years. "Taxing our way out of this crisis is off the table. "

The governor also directed state agencies to seek approval from his
budget office before entering into any contracts and spending for
building projects, furniture, cell phones, meals and other nonpersonnel
items.

The move came after a 10 percent cut this summer to agency budgets and a
hiring freeze.

Unrestricted state funds account for $56 billion of this year's
$120.8-billion budget with the remainder being federal money and
restricted funds. And the $56 billion is where cuts must come from,
Paterson said. "Everything is on the table. ... Could we get to layoffs?
We did in 1975 and we're in a worse economic condition now than we were
then," he said on WOR radio in Manhattan
<http://www.newsday.com/topic/us/new-york/new-york-city/manhattan-%28new
-york-city%29-PLGEO100100804010000.topic> .

Democrat Paterson also took aim at public pledges by state Senate
leaders Dean Skelos (R-Rockville Centre) and Malcolm Smith (D-St. Albans
<http://www.newsday.com/topic/us/new-york/new-york-city/queens-%28new-yo
rk-city%29/st.-albans-PLGEO100100805017000.topic> ) to oppose midyear
cuts in school aid when lawmakers address the deficit in a Nov. 18
special session. "Seventy-one percent of the resources we spend on
education are administrative," Paterson said. "We can make a lot of cuts
... without touching the classroom or affecting teachers."

Skelos spokesman John McArdle said the senator looked forward to
receiving Paterson's recommendations for budget cuts and would respond
afterward. Skelos continues to oppose tax hikes, layoffs of state
workers and actions that would drive up the property taxes levied by
localities.

Dan Weiller, a spokesman for Assembly Speaker Sheldon Silver
<http://www.newsday.com/topic/politics/sheldon-silver-PEPLT006050.topic>
(D-Manhattan), said, "We're working very closely with the governor and
everything is on the table."

http://www.newsday.com/news/local/state/ny-stbudg045911272nov04,0,101529
6.story 

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