Paterson To Withhold 10% From Schools And Governments

To keep the state from becoming "insolvent," Governor Paterson announced that he will withhold 10 percent of nearly $1.9 billion in funding for schools and municipalities — including New York City — that was supposed to be issued on Tuesday.

As part of what he has described as a last ditch effort to avoid crossing "the financial Rubicon into fiscal disaster," Paterson will indefinitely delay the payout of $60 million in school aid and $23.9 million in municipal assistance that would have come to New York City. He insisted that he is not cutting the funds or impounding them, but putting them off until the state can afford the expenditures.

The Governor blamed the state Legislature for recently enacting a $2.7 billion budget deficit reduction package when he asked for a $3.2 billion package, which he says could have closed the budget shortfall. "Actions have consequences, choices matter and people are going to remember who stood up to confront a crisis and who stuck their heads in the sand and shirked responsibility," said Paterson, who noted that he expects legal challenges, but believes he is in the right. "If the Legislature won't act, I will." He added that if he didn't take action, the state would turn out bouncing checks, which "in itself is really what's illegal."

Legislators say that Paterson has crossed the line: "Case law says the Legislature is the branch of government with the power to enact and amend the budget," Sen. Eric Schneiderman (D-Manhattan) told the tabloid. "He may have difficulty working with the Legislature, but it is his constitutional obligation to do so." Education groups have already prepared lawsuits if their funding is withheld.

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By Ben Muessig in News on December 14, 2009 8:30 AM

Comments [rss]

Spirit of 76

Yeah, you guys say you love Paterson now, but what happens if the courts rule that withholding funds is illegal for the governor's office? What will you think of him then? He's the governor. Why doesn't he do something else like order state agencies to come up with cuts of 10% of their budgets? That's something his office has the legal power to do and the legislature doesn't.

youngpro

Casey:

true- paterson is probably the ONLY person i trust in albany right now. he just gets a lotta shit for being the one to call the bad news.

Malcolm Tucker

I'm new to your city, your state and your country, a legal resident, so I can't vote.

But can someone enlighten me, why the mass majority seems to have no problems with the rampant corruption and overall fuckery coming out of the state capital? I mean, where I come from, we hoist the bastarts on their petards and piss on them, but here, they get away with it, in the open of all places.

And these cocknozzles get re-elected again and again! The hell why?

BDS=(Boycott.Divest.Sanction)

I'm curious Malcolm where do you come from where corruption is under control?

Malcolm Tucker

The Great White North, and while corruption there is not "under control" by a long shot, it's not as flagrantly out in the open as it is here. Up there the stakes aren't huge enough for mass corruption because it's a large fuckin' land-mass with a small fuckin' population -- a case of beer and a box of donuts is all it takes, really -- and when shite goes down we'll spend millions in public inquiries, rooting out the causes and the culprits, and throwing bastard lobbyists in the clink.

BDS=(Boycott.Divest.Sanction)

I buy that. The US is probably the most corrupt developed country there is. Its a shame.

Malcolm Tucker

Hell we turfed an entire federal government a few years back over corruption of one wing of the party in one province.

Casey

It occurs to me that Paterson has been getting a lot of flak for being the only responsible person in Albany.

Next election, I'm likely to vote for him. And I'm likely to vote against all of my state representatives and senators, because they've literally done nothing but quibble while Paterson begged them to take action.

Sad that New York has come to this point.

Kojak

He has to do what he has to do. If the state can't pay, what do they expect him to do? State's aren't allowed to carry deficits. Companies do the same thing when they have negative cash flows.