Today, Governor Paterson will ask the State Legislature to approve furloughing 100,000 state workers one a day week until a budget is passed. (The budget is now 27 days overdue.) The Times Union reports, "With the state budget almost a month late, the furlough plan is the governor's new cash-saving proposal as talks with the Legislature continue to stalemate... Although details were still being worked out, state Budget Director Robert Megna estimated roughly 100,000 workers, or 70 percent of the state work force, would be subject to the furlough. Each day of furlough would save the state roughly $30 million, he added." more ›

The NY State Legislature did not manage to meet the annual April 1st deadline for a state budget. But at least there's precedent—they didn't meet the deadline for the three years before this one either! While Governor Paterson has delayed payments to schools and stopped construction projects, there's one small, teeny, slight silver lining: According to the NY Times, "Starting Thursday, no statewide official or legislator — from Mr. Paterson on down — will be paid their salaries until a budget is approved, under a 1998 law." Too bad many lawmakers have other jobs (we're looking at you, Sheldon Silver!) more ›

Yesterday, Lieutenant Governor Richard Ravitch unveiled his NY State fiscal plan, which includes limited borrowing, a change in accounting practices, and creating a board that would review the budget on a quarterly basis. While some lawmakers are unhappy with the ideas proposed, given that NY State is facing a $9 billion deficit—and another $15 billion gap next year—they seem resigned to agree to it. more ›

Lieutenant Governor Richard Ravitch has just unveiled his five year fiscal plan for NY State. Details had been leaked over the past few days, so it was no shock that the plan includes limited borrowing, adopting GAAP accounting, and creating a Financial Review Board to monitor and review the plan. more ›

In the latest "Can Governor Paterson lead? No" blitz (yesterday, sources called him "insanely mercurial"), Assembly Speaker Sheldon Silver tells the Daily News, "I think it would be good" if Lieutenant Governor Richard Ravitch handled critical budget talks with the Legislature. Silver, who already praised Ravitch in the NY Times, explained, "I think he might have some, I'll call it, out-of-the-box thinking that may move us toward resolution. Obviously, everything he does would be at the behest of the governor." more ›

Governor Paterson was saying "I told you so" yesterday when discussing NY State's finances. After grim news that there was a shortfall in the state's general fund, Paterson said that there was a $600 million shortfall in that fund (you know, the one used to pay for state operations, etc.) but there was $883 million available, "I want to be sure everybody in the state understands we are not running out of money," adding, "I will not let the state run out of money as long as I can stand on two feet. What we have been trying to point out since we introduced the deficit reduction plan in September is the fact that our state is spending beyond its means." more ›

After months of warnings, NY State is now broke. The NY Times reports, "New York had a negative balance of $174 million in its general fund on Wednesday, with nearly $1 billion in bills owed by day’s end." And State Comptroller Thomas DiNapoli said, "New York State is officially living paycheck to paycheck. The state is starting the new year by scrambling to make payments and juggle money." more ›

In an interview with the AP, Governor Paterson criticizes groups who are upset he's withholding payments to them because of the state's budget crisis: "It's almost like children who start screaming and pulling the covers over their head to make the monsters go away. Well, they can scream all they want and pull the wool over their eyes, but the public sees the monsters of the lack of cash and the monsters of unavailability of credit are here, and someone is going to have to be the adult force that comes into the room and gets rid of the monsters. And the only way to do that is to practice a new culture of governance called discipline financing." more ›

NY1 reports that State Comptroller Thomas DiNapoli found "New York State has lost nearly $100 million in billing errors and waste in Medicaid. Among the mistakes auditors discovered was nearly $3 million in overpayments, including payments for services such as tooth cleaning for toothless patients. Another audit found the state Department of Health spent $28 million on Medicaid payments for residents of other states." And we wonder why we're in a budget crisis! more ›

With the MTA's approval of service cuts for subway, bus, commuter railroad, and paratransit in order to make up for a $400+ million budget shortfull, everyone is angry. But who should be blamed? more ›

After Governor Paterson decided to withhold 10% of payments to schools and municipalities—a move he deemed necessary to keep the state from going "insolvent"—a teachers union and other school officials have sued, accusing him of violating the State Constitution. New York State United Teachers vice president Alan Lubin told the NY Times, "This is a terrible day in New York’s history. ;For this coalition to stand back and watch the governor take the money that was allocated by the State Legislature for schools, for programs, for children, and pull it back, is really a terrible thing to have witnessed." more ›

Even while haggling in Copenhagen, our politicians are still hard at work for us: case-in-point, Mayor Bloomberg did an interview with CNBC yesterday to discuss the MTA funding crisis, and alluded to the possible re-birth of his congestion pricing plan: more ›

When fares rose to $2.25 and the state legislature bailed out the MTA in May, it was with the understanding that there would be no service cuts. But now the MTA's "doomsday" scenario has been revived in order to cover an unexpected financial shortfall of nearly $400 million. A budget plan under consideration by the authority’s Finance Committee today would slash the number of subway trains during the day, late nights and weekends. Free or discounted fares for students would be phased out, dozens of bus lines would be reduced or eliminated, the W and Z would be terminated, and service on the M and G lines cut back. And people are pissed. more ›

The State Assembly passed a $2.8 billion deficit reduction plan last night and, according to the Times Union, "The Senate is expected to pass the bills with bipartisan support in a session scheduled for 10 a.m. today." Of course, this is not the $3.2 billion in reductions that Governor Paterson has repeatedly said the state needs, but he said he'd take it anyway, "I would not describe it as a 'deal' because a deal means that all parties accept the agreement... It does give us about $600 million in cuts or other actions that require legislative approval, so we would not cut off our nose to spite our face." more ›

The State Senate and Assembly have reportedly come up with $2.9 billion in cuts to the state budget, but the Times Union reports, Governor "Paterson, however, immediately claimed that wouldn't go far enough, and said he would move to unilaterally cut aid to localities." As in not pay social service agencies and public schools—Paterson said, "Unfortunately, the Legislature’s last best offer does not take sufficient action to restore New York State’s long-term fiscal stability." more ›

With NY State running out of money because the State Legislature has been unable to offer a plan for billions needed in budget cuts, Governor Paterson announced he was moving ahead with a plan for $1.6 billion in savings, "I first presented my Deficit Reduction Plan on October 15, and since that time the Legislature has refused to take necessary action to maintain our State’s fiscal stability. As I said directly to New Yorkers last week, if legislators won’t face up to their responsibility and join me in making the tough decisions - I’ll do it myself. I will continue to fight every single day to keep New York State afloat in the midst of this historic economic crisis - with or without the help of the Legislature." more ›

Reiterating worries about the NY State budget—and the lack of agreement from the State Legislature— State Comptroller Thomas DiNapoli produced a YouTube video to beg state lawmakers and Governor Paterson to "close a budget deficit that he warned could reach $4 billion by the end of the fiscal year in March." In fact, DiNapoli said Paterson's projection of the state only have $36 million by the end of the year was "optimistic... We think if no action is taken, the state will end December with a negative balance, about minus $3 million." DiNapoli says in the video (see it after the jump), "It is time for state government to make those same tough choices and to be more responsible about our spending." more ›

New York State's dire budget situation gets the front page treatment from the NY Times today. And the Times sounds the alarm bells and points a finger in the direction of a certain state body:

"Without a budget deal, New York will be left with just $36 million in the bank by the end of December, according to current projections. And the money will last that long, officials say, only if the state chooses to fully exhaust its emergency reserves by tapping several billion dollars’ worth of temporary loans from its rainy-day fund and short-term investments. more ›

Even though the State Legislature has been in special session the past few weeks at Governor Paterson's request because of the state's huge $3.2 billion deficit, no action has been taken to, you know, deal with the deficit and cut the state budget. Yesterday, Paterson asked for special, emergency power to cut the budget himself, which lawmakers, naturally, thought was crazy. Senate Minority Leader Dean Skelos declared, "This is not the old Soviet Union." more ›

Albany is doing what it does best—not coming to an agreement about important stuff! Lawmakers are holding another special session to try to deal with the state's $3.2 billion deficit, something they've been meeting about for the past two weeks. The Assembly is apparently upset the Senate can't get their act together and may even consider a two-way deal with just Governor Paterson. State Senate President Pro Tem Malcolm Smith told NY1, “I think the governor wants the $3.2 billion; we're trying to indicate to him that we may not get exactly there, but we're very close, and I think that's where the stalemate is." more ›

With the state looking to cut $90 million from the SUNY system, the NY Times reports that some "are questioning whether the emphasis on athletics is misguided." SUNY lifted bans on athletic scholarships in 1986 and SUNY Buffalo was the first school to join Division I in 1991, but the success of the program is questioned. And Assemblyman Peter Rivera (D-Bronx) doesn't think state funds should be used towards building "powerhouse" sports programs, "That’s not the purpose of a SUNY school. The purpose of a SUNY school is to provide the best education possible." more ›

Get ready for some Albany-style bickering! Tomorrow, Governor Paterson will convene a special session of the Legislature to discussion issues like the $3 billion budget deficit and—possibly—gay marriage, but the NY Times is worried enough that it has an editorial, "Albany’s toughest and most important job right now is to make certain that New York does not become another California, running out of cash, paying bills with i.o.u.’s and watching state credit ratings deteriorate." more ›

With his proposed $3 billion budget and other issues to contend with, Governor Paterson has called a special session of the State Legislature next month—plus he wants a "leaders meeting" in NYC this Thursday, which seems like it would include State Senator Pedro Espada Jr. among the leaders, since he is the Senate Majority leader. more ›

After his $3 billion in budget cuts weren't warmly received by some lawmakers, Governor Paterson continues to be on the offensive. The Post reports that yesterday, Paterson called lawmakers who opposed his $1 billion in cuts to education and Medicaid "selfish" and "obtuse." And he had this to say to special interest groups: "We are in a recession. You can't say, 'I understand we're in a recession,' and not have any idea of what that actually means in terms of sacrifices we all have to make." more ›

After unveiling his $3 billion in budget cuts for this year (not to mention another $2 billion next) on Thursday, Governor Paterson is on the offensive, appearing on numerous radio and TV stations. Why the media blitz? Because some state lawmakers have complained about the cuts, leaving Paterson to fire back, "They can find all kinds of ways to spend money but never seem to be able to meet obligations." more ›

As he suggested—and as everyone expected—Governor Paterson's deficit reduction plan was indeed grim: He proposed cutting a total of $5 billion from the budget over two years, $3 billion for this fiscal year and $2 billion from next. Paterson pleaded for the State Legislature to work with him, "During a time of uncommon difficulty, we need to work together for the common good and enact a consensus plan that helps us avoid the severe consequences faced by other states that failed to swiftly address their budget problems. This will mean hard and painful choices, but that is exactly the type of leadership New Yorkers deserve from their public officials." more ›

Today, Governor David Paterson will present his plan for about $2.5 billion in budget cuts. When asked about it, Paterson previously only said, "Pain," but he also told the Daily News, "It's going to be pretty grim. It's going to be fair. It's going to be across the board. It's going to be hard to endure, but the consequences [of doing nothing] are harder." more ›

Lawmakers will likely be making more cuts to the state budget now that State Comptroller Thomas DiNapoli has revealed "tax revenues declined even more than anticipated in April." According to his press release, the General Fund revenues were 44% less than last year and 5% less (about $239 million) than Governor Paterson's already more-modest projection for the month. DiNapoli warned, "We’ve already tapped nearly all of our unreserved funds so there is very little cushion if revenues continue to fall. We need to watch revenues and spending very closely, because the state may be forced to readjust priorities." Speaking of spending, it's up 12% from last year, mainly due to education, health and the environment. However, other revenue-generating ideas from the state budget—such as increased taxes for higher income brackets and and other fees—won't show up until this month and next. The Department of Taxation and Finance took a glass half full approach, telling the Times, "The state’s finances are in line with the fiscal plan, since decreases in projected revenues were largely offset by decreases in spending." more ›

Last week, the state's largest union rejected Governor Paterson's offer, raising the possibility he might make good on his threat to cut almost 9,000 jobs if unions didn't make concessions in contract negotiations. Now the NY Times reports on how the union is pressing forward: "They produced television commercials and newspaper ads with photos of Mr. Paterson sticking his fingers in his ears above the words 'Why aren’t you listening?' The president of one of the unions variously accused the governor last week of union busting, putting people’s lives in danger, and drug use." The unions were looking to drive Paterson's numbers down, but Paterson's approval ratings are already pretty much rock bottom, and the Times points out, "the ferocity of the attacks has only stiffened Mr. Paterson’s resolve." As for one union's claim that reopening the contract would "set a precedent," a Paterson spokesperson scoffed, "What is the precedent exactly? That every 80 years, when there’s a historic economic and fiscal crisis, the state work force might only get half its planned raise?” more ›

NBC New York got a hold of a memo from city budget director which asks the heads of city agencies to "prepare for thousands of layoffs... As many as 7,000 more jobs could be eliminated, City Hall sources said." more ›