on-ny” src=”https://www.hotindienews.com/wp-content/uploads/2009/09/david-paterson-ny-300×226.jpg” alt=”Gov. David Paterson: New York state budget deficit is growing and will soon top $3 billion.” width=”254″ height=”191″ />
New York Gov. David Paterson said today the state budget deficit is growing and will soon top $3 billion.
Paterson revealed the new projection at a public meeting with legislative leaders. The estimate is $900 million higher than previous projections.
“This is not a situation anybody basically would have signed up for, but this is the situation that defines us,” Paterson told top Democrats and Republicans from the state Senate and Assembly.
The deficit in the state’s $131.9 billion budget is growing because tax revenue continues to fall below already conservative estimates, Paterson said.
Paterson urged legislators to rely on spending cuts to balance the budget again. Legislators from both political parties said raising taxes and fees is not an option.
“It is the only way our state will avoid some of the defects and devastation that other states are experiencing as we speak,” Paterson said. “A lot of it will be unpopular, I’ll tell you that right now.”
The meeting resulted in few actions. Legislators did agree to have their budget staffs meet soon, share economic data and analyses and begin debating ways to balance the budget.
Paterson and legislative leaders did not set a date for all legislators to return to Albany to enact measures that will balance the budget. Paterson said he wants to make sure legislators will take action when they return.
“This has to get done in a very short period of time. I hope to announce next week, or sometime in the near future, when we can come back,” Paterson said. “I just don’t want to call a special session and have everyone put platitudes on the table but not negotiate anything.
Richard Ravitch, the state’s new lieutenant governor, urged legislators to be “collegial” and prevent politics from getting involved in the budget negotiations.
“The extraordinary prosperity this country had in the last 10 years was built largely on borrowed money,” Ravitch said. “The full consequences of that have not fully been felt in the economy yet. There aren’t two forecasters who agree on what’s in store for us.”
The special session will be a barometer gauging the stability of the Senate, which devolved into partisan gridlock during June and July. Democrats and Republicans fought over who controlled the chamber after two Democrats created a voting bloc with all 30 Senate Republicans.
In the end, Democrats maintained their original 32-30 majority. Leadership has changed hands, and now, Democrats are led by Sen. John Sampson (D-Brooklyn).
“The question is not whether the budget is balanced financially, but whether it balances our core values,” Sampson said. “And those are: No. 1, creating no new taxes or fees; two, having zero budget growth; and three, property tax relief and mandate relief.”
Senate Minority Leader Dean Skelos (R-Long Island) said raising taxes and fees is out of the question.
“This budget raised taxes to an unconscionable level,” Skelos said. “We can’t do that again.”
