Billions Eyed for Cuts
August 11th, 2008
Gov. David Paterson got out his red pen this morning to slash millions from the state’s Medicaid system, the City University of New York and the legislature’s own “pork barrel” spending in order to save $2.6 billion over fiscal year 2009 and 2010.
The proposed cuts came two weeks after the governor told the state in a rare public address that it had to cut back — big time.
The cuts will take more than $500 million from state Medicaid, including lowering hospital rate reimbursements by 7 percent, discontinuing funding for nursing homes that have identified alternate funding sources and ensuring insurance company savings are passed onto the state.
Paterson hopes to save $132 million by slashing new programs by 6 percent and more than $100 million from cuts to CUNY. He also wants to reduce this year’s member items by $100 million.
(You can listen to the conference call where the governor laid out his plan here.)
So far, reaction has been mixed.
Senate Majority Leader Dean Skelos put out the following statement: “While we are working cooperatively to get a head start on the 2009-10 State Budget, it’s important that the Governor and Legislature not take any actions that would force local governments to raise their local taxes to make up for a shortfall from Albany. We are concerned that reducing local government assistance funding may have such an effect.”
Assembly Speaker Sheldon Silver said his body will “review” the governor’s proposals.
The Greater New York Hospital Association and 1199 SEIU have criticized the cuts.
By Courtney Gross on August 11, 2008, 4:59 pmIn category: Albany, Economy, Gotham City, Health, Public Finance | 2 Comments »


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