[NYAPRS Enews] Paterson Seeks Another Nov 18 Budget Cutting Session

[Harvey Rosenthal]

Crisis Puts $1.2 Billion Hole in Albany Budget

By DANNY HAKIM  New York Times  October 3, 2008

 

Gov. David A. Paterson's administration said this morning that the
financial crisis had opened a $1.2 billion hole in this year's state
budget and predicted the numbers would continue to worsen. 

 

Mr. Paterson also said he would submit an executive budget for next year
several months ahead of time - by mid-December instead of mid-March, and
try to pull forward the state's fiscal year. He said he was taking the
steps to try to forestall a downgrade in the state's credit rating.

 

"There's no way to sugarcoat it," the governor said during a public
meeting with legislative leaders on Friday morning. "It has become clear
over the last 24 hours, according to Warren Buffett, that the United
States economy can be compared to a great athlete who suffered a
stroke."

 

The governor said he will recall lawmakers to Albany for another special
session on Nov. 18 - well after the election. Mr. Paterson said he will
seek $2 billion worth of cuts for the current fiscal year, which ends on
March 31, 2009, because of his fears that the state's taxpayers will
continue to decline. Lawmakers already came back to Albany over the
summer and cut roughly $400 million from the current year's budget
already. 

 

Mr. Paterson did not release new numbers for next year's budget gap, but
most expect the falloff next year will be even more severe. New York's
exposure to the financial crisis is considerable because Wall Street
accounts for a fifth of the state's tax revenue.

 

Mr. Paterson also lamented the news that Wachovia was acquired by Wells
Fargo, a West Coast bank, instead of the New York based Citigroup. 

 

"That's a significant hit to the New York economy," Mr. Paterson said. 

 

http://cityroom.blogs.nytimes.com/2008/10/03/crisis-puts-12-billion-hole
-in-albany-budget 

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