Politics on the Hudson

Gov. David Paterson is expected to warn of a deepening fiscal crisis Tuesday when he releases the state’s mid-year fiscal plan.

Speaking in Buffalo on Monday, Paterson continued his forceful tone that the state’s budget problems will only get worse in the months, and maybe years, ahead.

He estimated that the budget gap for this fiscal year may have already grown by about $300 million in recent weeks – from $1.2 billion to $1.5 billion. He has called lawmakers back to Albany on Nov. 18 to cut $2 billion from the current budget, which expires March 31.

For the 2009-10 fiscal year, Paterson said the budget gap is expected to be as high as $12 billion—double the projection in July.

“I don’t think I can in any way describe to you the gravity of the economic crisis that is hitting the state,” he said.

On Tuesday, Paterson will present the state’s updated mid-year financial plan.

Assembly Speaker Sheldon Silver, D-Manhattan, on Monday seemed to reject the idea of raising taxes on millionaires this year to cover the budget gap. But Silver kept the possibility open for next year.

“The Speaker has said repeatedly that he will work with his colleagues in government during the special session on Nov. 18 to bring New York’s current state budget back into balance without raising taxes,” Silver spokesman Dan Weiller said.

Weiller said that closing next year’s budget gap will require “shared sacrifice” and said for next year’s budget, “all policy options will be on the table.”

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