Whole New Budget Ballgame

by Scott Feldman

Lawmakers in Albany are going to be reopening and reworking the budget book. At a news conference in Manhattan this morning, Governor Paterson said New York is "officially" in recession. And it may not be over any time soon. Budget Director Laura Anglin says New York's recessions have historically lasted 25 months, twice as long as national recessions. So, what's going to be done to right the state's financial ship hard hit by declining revenues from tough times on Wall Street ? Paterson has ordered a hiring freeze for the state's workforce and an additional 7 percent cut of spending from state agency budgets. Paterson says that would save $630 million dollars. As for the legislature's part, the Governor wants them to find another $600 million dollars in savings. Asked whether there would be cuts to school aid, Paterson says "nothing is off the table right now, we'll be talking to school boards, unions, parents, everyone involved in the school process to see where we stand there." Asked about a tax hike, Paterson said, "only as a last resort." So, Albany lawmakers head back for a special emergency economic session on August 19th. In addition to trimming 1.2 billion from the budget, the Governor will also be asking lawmakers to spend money. Millions in grants for home heating assistance for the poor this winter. And he wants a cap on yearly increases in school taxes. Says Paterson, "we're all going to have to feel some pain, but the sooner we address it, the sooner we can recover from it." To dig into more of the nitty-gritty of the budget process, just go to www.ny.gov/governor/press