Politics on the Hudson

Speaking to the state Business Council in Buffalo today, Assembly Speaker Sheldon Silver, D-Manhattan, recognized the difficult fiscal challenges facing the state after a few months ago downplaying Gov. Paterson’s recognition of the pending problem.

Silver said that, “Drastic cuts in Wall Street compensation and the subsequent reductions in Wall Street tax revenues will affect our ability as a state to fund essential infrastructure projects, schools, and our higher education system.”

While he pledged to continue to invest in upstate and in improving state services, he acknowledged “obviously, the 2009-2010 budget is going to be tough  I and my Assembly colleagues are committed to working with the Governor, with our colleagues in the Senate, with the business community, and with regional leadership to clearly delineate priorities and to ensure that whatever sacrifices are advanced will be shared sacrifices.”

Paterson said today on WNYC Radio that the state may have lost $2 billion because of Wall Street’s struggles this week, meaning that the current budget may have a deficit despite the cuts already made by him and the state Legislature.

“We’ll look at the economic forecast next week and determine whether or not we need” the Legislature to come back to make more cuts, Paterson said, “but we won’t have to have any more squabbles about whether or not our economy is in dire position.”