Paterson Offers Details on Possible Budget Cuts

Governor David Paterson's unusual televised Tuesday afternoon speech detailing the state budget's deficit and imploring lawmakers to head back to work* has been followed up with some specifics today. He says a 7% cut to state agency spending would save $630 million. Paterson also suggests an "immediate hard hiring freeze," and wants the Legislature to help find $1.2 billion in savings.

During his speech yesterday, Paterson implied the state would need to think about selling roads, bridges and tunnels to close the widening deficit. Citizens Budget Commission state police expert Elizabeth Lynam told the Post, "If it's used to close a budget gap, it's a one-shot. It's doesn't help you in the long run. It's a fiscal gimmick." And other lawmakers had concerns; Assembly Leader Sheldon Silver said, "In every period of economic decline, the call for cuts and caps gives rise to the same important questions. What programs will be cut?”

Still, some watchdog groups were happy that Paterson is sounding the alarm bell about the budget and how the government needs to "do more with less" overall; the Manhattan Institute's director of Empire Center for New York State Policy, E.J. McMahon, said to the Daily News, "The more he drives home this message the better."

Political operative Bill Cunningham who worked for Governor Hugh Carey in the 1970s and Mayor Bloomberg as a communications director broke down Paterson's situation to the Observer, comparing it to the crisis Carey eventually was able to work through, “So, you can conceivably deal with budget problems that seem intractable and still get to a point where you can cut taxes. But Governor Paterson doesn’t have a full four-year term in front of him. He has two and a half years left to go before an election.”

*The Politicker says Governor Paterson apologized for saying Albany lawmakers were on vacation (the lawmakers are in their district offices now).

Contact the author of this article or email tips@gothamist.com with further questions, comments or tips.

By Jen Chung in News on July 30, 2008 12:07 PM

Comments [rss]

NannyState

That stupid spanish company that buys roads and bridges, then raises tolls might be a little strained by the jacked up economy back in Spain. The Australian company Macquarie might put in a bid, but knowing how desperate NY is and having few competitors, the state might not get its full measure. Either way we end up paying much more for the same crap. They should sell the Empire State Plaza in Albany to Dubai. With luck, they'd crate it and ship it to a golf course in the Persian Gulf.

nik13

It's not really the pork. NY exists for sole benefit of state employees, hospital workers, utilities, teachers & other unions. They expect to be lavishly rewarded for doing a minimal labor.

Only in public sector, one could retire after 20 years with such lavish benefits.

kenny000

If you don't privatize the roads, then the gov't would have to put in a lot of money to maintain the infrastructure. It's not cheap!

Either way is fine with me as long as I can get to where I need to go without the bridge collapsing on me.

blablanyc

Privatization of roads, bridges and tunnels sounds like something that would come out of Mary Peters and Bloomberg's mouths. I'm against privatization.

blablanyc

I'm waiting for Paterson to introduce the "blind item veto."

eyekantspel

Hiring freeze-- It isn't like they weren't already aware of billion dollar deficits. Shouldn't that have been in place already?

The problem is, in surplus years, the government spends money like it's free. Because to them, it is free. It's easy to hire a bunch of people. Firing, not so much fun.

But if we don't have the money, the options are pretty simple. Raise taxes or cut expenses. A few years ago we weren't spending nearly as much as we do now

this site is excellent:

http://www.nyfiscalwatch.com/html/fwm_2007-10.html

shows that city spending has grown from about $30B in 1998 to about $44B in 2007.

That's adjusted for inflation.

Son of Spam

>>[Paterson] wants the Legislature to help find $1.2 billion in savings.

Is that figure before or after they take Spitzer's whore expenditures off the books? That's a good chunk of savings right there.

kissel

how about cut some of the millions of public employees that don't have very much to do, but get enormously costly benefits? Or how about make some across the board cuts to ALL programs. Selling roads and bridges is asinine and hasn't worked in any other state that has tried it.

holyfrjole

"During his speech yesterday, Paterson implied the state would need to think about selling roads, bridges and tunnels to close the widening deficit. "

So, they really do have a bridge to sell in Brooklyn?

takethecanoli

Selling your infrastructure is a *bad thing*.

http://www.caranddriver.com/features/columns/c_d_staff/patrick_bedard/turning_asphalt_into_gold_column