[NYAPRS Enews] D&C: Paterson to Start Withholding State Payments Next Week?

[Harvey Rosenthal]

Gov. Paterson To Make Deeper Budget Cuts On His Own

by James Lawrence  Rochester Democrat & Chronicle  December 3, 2009

 

Frustrated with foot-dragging, mealy-mouth state lawmakers, Gov. David
Paterson is going it alone.

 

That's what the governor told me a short while ago by phone after
visiting with the two Rochester police officers who were shot in the
line of duty earlier this week.

 

Paterson says the $2.7 billion Deficit Reduction Proposal that the
Legislature adopted this week simply doesn't cut it. The governor says
after the $1.6 billion in cuts that he earlier vowed to make on his own
are subtracted, the action by the Legislature amounts to only about $600
million in additional cuts.

 

That's a piddling amount when it's considered that Paterson has
estimated the mid-year deficit at $3.2 billion and State Comptroller Tom
DiNapoli places the figure at more like $4 billion by the end of the
year.

 

The governor says he will unilaterally delay all scheduled payments to
"stop the state from running out of cash. The Legislature had the option
of closing the deficit or authorizing me to do so. They did neither, so
I'm authorizing myself to close the deficit."

 

As Paterson headed to the Rochester airport on his way back to Albany,
he told me that he has conferred with his lawyers and that it is their
opinion that he can legally take unilateral action, provided he does so
to "save the state's finances and that the cuts are totally across the
board." It's worth remembering that Paterson said the same thing about
unilaterally naming a lieutenant governor and the state's highest court
later backed him up.

 

Asked when he would act, Paterson told me he hoped to start sometime
next week after also talking to such disparate interests as unions,
business leaders and civic groups.  

 

 "Actions have consequences and so does inaction," said the governor.
"I'm fed up, too."

 

http://blogs.democratandchronicle.com/editorial/2009/12/03/gov-paterson-
to-make-deeper-budget-cuts-on-his-own/ 

 

Feisty Gov. Paterson To Lawmakers: Sue Me If You Want Over Unilateral
Budget Decisions

BY Kenneth Lovett DAILY NEWS ALBANY BUREAU CHIEF December 4th 2009

 

ALBANY - A feisty Gov. Paterson on Thursday dared lawmakers to sue him
over his plan to unilaterally cut some state payments to deal with the
budget gap.

 

Paterson, in an appearance in Rochester, ripped lawmakers for adopting a
$2.7 billion budget deficit reduction plan that he says won't generate
the required savings the state needs to pay its bills.

 

He said he plans to go forward with his plan to cut state payments
across the board.

 

"Actions have consequences, and so does inaction," Paterson said.

 

"They did such a poor job, I'm going to do it even without their
permission, and if they want to take me to court they can sue me, but I
will not let the state run out of money on our watch."

 

Sen. Eric Schneiderman (D-Manhattan) said the Legislature or those who
get cut will likely do just that.

 

He said the state's top court in 1980 ruled a governor could not
unilaterally impound funds approved for state agencies or programs.

 

The move would unconstitutionally usurp the role of the Legislature,
Schneiderman said.

 

"The law cannot be clearer on this," Schneiderman said.

 

http://www.nydailynews.com/news/2009/12/04/2009-12-04_gov_sez_sue_me_pol
s_say_they_will.html#ixzz0Yj9hKCO6 
-----------

New Battle Brewing Over Paterson's Plan to Make Unilateral Budget Cuts

Karen DeWitt   New York Public Radio  December 4, 2009

 

The month long fight over how to close the budget deficit has ended, but
now a new feud may be brewing. State lawmakers say Governor Paterson
does not have the constitutional powers to follow through on his plan to
unilaterally cut spending to schools and local governments later this
month.

 

Governor Paterson says the deficit reduction plan approved by the
legislature this week does not go far enough, and will not end a cash
crunch for the state later this month. The governor says the package
closes just $2.7 billion dollars of the $3.2 billion dollar gap.
Speaking in Rochester Thursday, Paterson says has no option but to
reduce payments for schools, recipients of the STAR property tax break
program, and others, when payments come due later this month.

 

"The legislature made the wrong choice," said Paterson. "The legislature
did not cover the amount of deficit that we have."

 

...Meanwhile, budget watchdogs agree with the governor's contention that
the deficit reduction plan approved by the legislature after four weeks
of special sessions does not do enough to resolve the state's long term
financial problems.

 

Betsy Lynam, with Citizens Budget Commission, says more than half of the
package, is one shot revenue raisers, including a nearly $400 million
dollar advance on federal stimulus monies for schools that were supposed
to be saved for next year. The plan also borrows from state and city
public authorities, and enacts a one-time tax amnesty program.

 

Lynam says there was one "bright spot" in the budget related
legislation. She says lawmakers did agree to approve the governor's plan
to enact a new pension tier system for new state and local government
employees, including teachers. It offers less generous benefits,
returning them to levels common in the 1980's and will bring the state
billions of dollars in savings in the long term.

 

If the state manages to limp through December without running out of
money, the entire budget fight will re-open in January, when Paterson is
due to present his plan for the new fiscal year, which begins in April.

 

http://www.publicbroadcasting.net/wxxi/news.newsmain/article/1/0/1584973
/WXXI.Local.Stories/New.Battle.Brewing.Over.Paterson%27s.Plan.to.Make.Un
ilateral.Budget.Cuts. 

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