Paterson Chops Agency Spending
October 6th, 2009
Gov. David Paterson, facing criticism for not presenting a promised plan to plug the state’s escalating budget deficit, reacted today by ordering state agencies to cut their non-labor costs by 11 percent. The move is expected to save around $500 million this fiscal year.
“While agencies have already taken significant action to reduce spending since I took office, further cuts are necessary given the State’s persistent fiscal difficulties,” said Paterson in a statement.
State agencies will be expected to cut “operating costs outside of state employee salary payments and fringe benefits.” Such expenses include “spending on travel, printing, vehicles, leases, energy, postage, consultant contracts, and equipment.”
The governor’s news release says agency heads should also “utilize further employee attrition and severance payments beyond those assumed in their workforce reduction plans to lower payroll costs and help achieve their savings target.” The press release also features a statement of support from Lieutenant Governor Richard Ravitch.
“These reductions are absolutely necessary to achieve our ultimate goal of reducing the deficit and getting New York back on firmer financial ground,” says Ravitch in the release. “However, as Governor Paterson has said time and again, these reductions are one part of our overall plan to address our economic crisis. I look forward to working with the Governor and our partners in government to make the decisions that need to be made for our State.”
Fred Dicker reported yesterday that tensions between Ravitch and Paterson’s advisers have developed over Ravitch’s desire to present a cost cutting plan. Paterson’s advisers reportedly don’t want to risk the backlash of presenting a plan that features harsh cuts to health care and education.
“These agency spending reductions, however, only represent a first step,” said Paterson in the statement. “I look forward to working cooperatively with the Legislature to enact additional savings and close our current-year deficit.”
For their part, legislators have been cautious and seem just about as excited about taking on the burden of cutting funding for sensitive programs as Paterson does.
Austin Shafran, spokesman for the Senate Majority, released this statement: “We support the Governor’s efforts to get spending under control. The Senate Majority is committed to working with the executive and the other leaders to protect New Yorkers from further tax and fee increases and to preserve vital services. With real transparency and real accountability, we will find the real savings we need to make New York more affordable for middle income families and small businesses.”
By David King on October 6, 2009, 1:31 pmIn category: Albany, Eye on Albany | No Comments »

