Gov. wants executive authority to close budget deficit

Posted by: Cara Matthews - Posted in Uncategorized on Nov 24, 2009

Gov. David Paterson said in a Web announcement this morning that he is submitting legislation to lawmakers that would give him executive authority to make the reductions necessary to close the state’s $3.2 billion mid-year budget gap.

Paterson and lawmakers have been unable to reach an agreement with the governor on how to close the deficit. This is the third week the Legislature is holding special sessions called by Paterson.

The governor said in a Web address this morning that the executive-authority option “would give me, as governor, a one-time authority to close the current-year budget deficit—to maintain New York’s strong credit rating and keep our state afloat.”

“I want to make clear that this is not a cash-flow problem that can be fixed with one-shots or creative accounting. This is a lack-of-cash crisis that threatens the financial stability of our state. Unless we take action, the state will run out of money,” he said.

Under the governor’s legislation, there would be $1.3 billion in payment reductions to education, health care and other areas.

Members in the Democrat-led Assembly are in private conference to discuss Paterson’s legislation and plan to resume special session at 3 p.m. In the Senate, which has 32 Democrats and 30 Republicans, lawmakers agreed to work together on an agreement. They said they need time to go through Paterson’s voluminous bill.

Senate Minority Leader Dean Skelos, R-Nassau County, said there may be some disagreements on cuts, but everyone understands they need to work in a bipartisan manner and reach an agreement within the next several days. He said he would work to have a bill ready to go for a vote on Monday.

“And (Majority Leader) John (Sampson) and I have had this discussion that battle will come as we approach 2010 (elections), but right now our responsibility is to get a deficit-reduction plan done and to restore the integrity quite frankly of this chamber, and we will get it done,” Skelos said.

Sampson, D-Brooklyn, and Skelos have both said they would not support any mid-year education cuts, something Paterson has proposed.

Sampson said there are concerns about making cuts to education institutions, “which have a tremendous impact economically in our communities, but most of all having school districts making decisions during this period of time as to whether or not they can survive and pass those cuts along to our constituencies with respect to property taxes.”