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Gov. to act unilaterally to close half of budget deficit

November
29

   Gov. David Paterson said Sunday that he would act unilaterally to close $1.6 billion of the approximately $3.1 billion budget gap, and he urged the Legislature to reach an agreement on a deficit-reduction plan for the balance as soon as possible.

   Negotiations with the Senate and Assembly over the holiday weekend had not led to any agreements or new proposals on how to remedy the problem, Paterson said during a conference call with reporters Sunday afternoon.

   The governor indicated that the administration is having more difficulty with the Senate than the Assembly in addressing the state’s “fiscal emergency.”

   “I have been trying at this point to make this a three-way agreement. I have been trying to work with them and continue to negotiate with them. The Senate in particular does not know that we’ve run out of time,” he said, adding that they seem “more concerned with short-term politics than the long-term reality.”

   Billions of dollars in payments from the state to cover school aid, tax rebates and other obligations are due next month. The state faces a downgrading of its credit rating if it does not have the cash on hand to pay those bills, the governor said.

   The governor and lawmakers have been unable to reach a deal, and this will be the fourth week he has called them into special session. The biggest stumbling block has been education cuts proposed by Paterson. Senate Democrats and Republicans do not want to make mid-year school-aid reductions. The Assembly has not ruled out cuts.

   Senate Democrats agree that there are administrative actions the governor should take while a “sensible solution to the budget gap is negotiated,” said Austin Shafran, spokesman for the Senate Democratic Majority.

   “We will continue to work with all sides on a bipartisan and fiscally prudent deficit-reduction plan that protects jobs, prevents tax hikes, and saves critical funding for our schools,” Shafran said.

   Robert Megna, Paterson’s budget director, said the state can borrow money for its general fund from other state accounts. New York is moving ahead this week with planned borrowing for capital projects, and the state can use the money from that before it is loaned out, he said.

   Lawmakers balked last week when the governor requested one-time permission to act on his own close the budget deficit if they couldn’t reach an agreement.

   “Now some of the senators said last week that they’re not going to let me do their job. My question is when are they going to do their job?” Paterson asked.

This entry was posted on Sunday, November 29th, 2009 at 3:00 pm by Cara Matthews.
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5 Responses to “Gov. to act unilaterally to close half of budget deficit”

  1. ed1

    According to reliable sources, nothing’s being cut – he’s merely temporarily shifting money from State agencies to the general fund – money THAT MUST, by law, be RETURNED!

  2. the consultant

    but nevertheless the state senate appears to be paralyzed
    in the face of this financial crisis…caught between
    their sworn obligation and the union demands that their
    largess not be cut

  3. centerfield

    To me Patterson is looking a lot better than the Senate here.

  4. Fighting Fritz

    Let’s be clear here: the Senate Republicans and the Assembly Republicans have also called for the Gov NOT TO CUT MID-YEAR SCHOOL AID and called for NO HEALTH CARE CUTS. You talk about the cuts as cuts to unions as if it was only the Democrats’ doing…when in fact, it’s PTA moms and dads who don’t want programs cut mid-year for the kids in class…it’s property taxpayers who know that a cut in state aid to local schools means higher property taxes next year…people with parents in nursing homes who know that mid-year cuts will make their seniors’ lives worse off….it’s poor and middle class college students who rely on TAP aid that will be cut.

    It suits the Republican agenda to a) Blame the Democrats for everything – although they held the Senate for 41 of the last 42 years – and held the Governorship and delivered 12 of the last 15 budgets, including those that gave away the store to the Health Care Unions in 2002. b) Vote NO on everything on the belief that they are not responsible to negotiate or compromise on anything.

  5. ed1

    Vote OUT all Democrats and liberal Republicans everywhere! USSR now stands for United States Socialist “Republic.”

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