Paterson Slams the Deficit Reduction Plan
December 2nd, 2009

Gov. David Paterson still isn’t pleased with the deficit reduction package passed by the legislature. Here is the statement from his office:

While the deficit reduction legislation passed by the Legislature provides needed savings, it falls well short of what is necessary to put New York on the road to fiscal and economic recovery. It does not fully address our current-year budget deficit. It does not solve our severe cash-flow crunch. It does not address our long-term structural imbalance. And at $2.7 billion in current-year savings, it does not even achieve the $2.8 billion deficit reduction target that some have touted for two days.

As Governor, I have a fundamental responsibility to keep our State solvent. Every day New Yorkers know that they simply cannot spend money that they do not have, and our State government should understand that as well. For decades, Albany has refused to take the necessary steps to control spending, and has too often put off until tomorrow what should have been done yesterday. I will not allow this to continue on my watch.

Because certain legislators are unwilling to stand up and control spending for fear of the political consequences, I will move forward and implement the tough choices they were unwilling to make. In the coming days, I will direct the Division of the Budget to reduce State aid payments administratively in order to balance the budget and prevent New York from running out of cash.

I have been and will continue to meet with Budget Director Robert L. Megna and Comptroller Thomas DiNapoli to assess the current cash-flow and revenue situation. Once that assessment is complete, I will announce the specific local assistance reductions I will implement unilaterally.

I do not take this action lightly, but there is no other responsible path. If the Legislature will not do what is necessary, I will take the difficult actions that are needed to restore our States fiscal integrity.

Senate Republicans aren’t thrilled with the deal either. They see it as a “first step.”

Here is the release from Senate Republicans:

“To put this deficit reduction plan in the right perspective you have to look at why New York has a $3.2 billion deficit because the Democrats in the Senate and Assembly, with Governor Paterson, put together a budget that increased spending by more than $12 billion.

They spent every dime of federal stimulus money when everyone knew the economy was in trouble; then they raised taxes and fees and spent even more.

The taxpayers want spending cut and we are doing that today. However, there was a better plan that cut spending even more than this bill. It was the plan Senate Republicans proposed over six weeks ago. Our spending cuts matched the Governors dollar-for-dollar, and went even further by including $2 billion in real cuts, with more than $1.6 billion in recurring savings.

We proposed cutting Medicaid spending, freezing purchases of recreational lands, and cutting $350 million in legislative additions to the budget. Unfortunately the Governor, the Speaker and other Democrats did not even want to consider them.

Senate Republicans were the first to announce our opposition to tax and fee hikes and mid-year school aid cuts that would hurt schools and property taxpayers. The final bill included neither tax hikes nor school aid cuts.

The bill that passed today is only a start, we face a much bigger deficit next year and we should pass a spending cap to address it now.

We heard the anger and frustration of the taxpayers they want us to cut spending, they want us to reduce taxes, and we have to bring a new fiscal reality to Albany because the taxpayers have simply had enough.”

By on December 2, 2009, 1:11 pm
In category: Albany,Eye on Albany | 1 Comment »

| More

RSS Feed RSS Feed


One Response to “Paterson Slams the Deficit Reduction Plan”

  1. Gale Buskohl Says:
    March 2nd, 2011 at 1:15 am

    Everyone who rags on the Academy Awards need to get over themselves. All of these movies this year are brilliant and no one should be disappointed in the winners. If the movies bore you to tears maybe you should skip movies with taste and go watch Madea Goes to Jail and call it a night.

Gotham Gazette the Place for Politics and Policy

Gotham Gazette is published by Citizens Union Foundation and is made possible by support from the Robert Sterling Clark Foundation, the John S. and James L. Knight Foundation, the Altman Foundation,the Fund for the City of New York and donors to Citizens Union Foundation. Please consider supporting Citizens Union Foundation's public education programs. Critical early support to Gotham Gazette was provided by the Charles H. Revson Foundation, Rockefeller Brothers Fund and the Alfred P. Sloan Foundation.

RSS Feed