Results tagged “budgetcrisis”

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."

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."

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.

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."

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."

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."

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."

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."

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?”

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."

Last night, the State Legislature struck a deal on the budget. According to the Times-Union, "In broad strokes, the agreement closes the state's estimated $16.2 billion budget deficit through $6 billion in federal stimulus dollars, $6 billion in cuts to an array of programs, and $4 billion in new revenue through an increase in the personal income tax on affluent New Yorkers."

As the reality of the MTA's approval of a severe fare hike (around 23-25% for subway and bus riders) and service cut (bus lines eliminated, subway lines cut or limited) set in, riders got angry at the MTA, at the State Legislature, at the overall mess. In fact, we thought we could hear our readers gathering their pitchforks...or at least getting their bikes ready. MTA Chairman H. Dale Hemmerdinger and CEO Elliot Sander gave remarks (full remarks after the jump) pointing out that years of the MTA's borrowing have contributed to the current predicament; Hemmerdinger said, "Our customers may not be 100% happy with us, but this time many clearly understood there are other - external - players who have helped cause our dilemma," and held out hope that Albany will act, "It can only be undone by actions that they will take, so we sure hope the pressure will build."

The Associated Press reports that Governor David Paterson is "ordering 8,900 state workers be laid off after unions refused concessions amid a staggering economic downturn." Apparently Paterson had wanted the unions to forget about raises they received during the last round of negotiations and "also agree to the creation of a fifth tier in the state pension fund," according to the Daily Politics. State budget director Laura Anglin told the AP the governor "is calling for the first state layoffs since the late 1990s after unions refused to even provide counter proposals"; she also said that unions were told and may come back to the negotiating table before the state sets the budget. If not, then layoffs could start in July 1.

With the state's budget in crisis, the NY State Senate created a website asking New Yorkers for ideas on how to cut the budget: "If you have a good idea for saving money in this year's state budget, send us your ideas. Get informed. Be creative. Ask questions. And think outside the box. Every submission will be reviewed by dedicated budget staff. "

Quinnipiac University released a new poll today with NY State voters' thoughts on Governor Paterson's recently announced tax proposals to close the billion-dollar deficit. Respondents were opposed to the tax on non-diet sodas, 60% to 37% (even diet soda drinkers opposed it, 58% to 39%). While voters "would rather cut services than raise taxes" 53% to 36%, they do support a tax for people making more than $1 million/year 84% to 13% (Paterson hasn't proposed it, but might turn to it). Overall, though 88% of voters believe that the state has a budget crisis, only 46% approve of how Paterson is handling it. But 53% approve of the job he's doing (to 29% who don't) and 54% (vs. 33%) believe he has the leadership skills to deal with the budget.

The special legislative session called upon by Governor Paterson yesterday fell on its face with no action being taken to address the already sizable and quickly growing state budget deficit. The ninety-minute session open to the public amounted to what some called nothing more than "political theater" and even "an exercise in mockery."

Governor David Paterson, frustrated by not getting a deal for the state's troubled budget before today's special Legislative session, described state lawmakers as being "out of touch," according to NY1. Paterson said, "Looking at Albany, and Albany not being able to cut $2 billion off of a $15 billion problem that has to be addressed in four months is more than irresponsible, it doesn't make any sense." He is particularly unhappy with Senate Majority Leader Dean Skelos (R), who will introduce Paterson's unpopular budget cuts for a vote without offering any ideas of his own for cuts. For the record, Assembly Speaker Sheldon Silver didn't offer any ideas for budget cuts either, and Paterson told the Post, "I'm not going to take the blame if we come out of the session without a budget-cutting package."

Governor Paterson unveiled his proposed $5.2 billion in cuts (or savings, depending on how you see things) yesterday to close the deficit. He said, “This is the worst economic crisis in this country since the Great Depression. That’s not an alarming statement, as it may have been when I said it in July. It’s now real.”

We'll sift through more of the details tomorrow, but here are the highlights from Governor Paterson's budget cuts: According to NY1, "Reducing the growth of education budget 9% to 5%"--savings of $585 million-- and reducing growth of Medicaid from 2% to 1%--a savings of $572 million. Also, cutting $41 million in aid to NYC and higher education cuts of $115 million. Assembly Speaker Sheldon SIlver and State Comptroller Thomas DiNapoli both praised Paterson's leadership; DiNapoli's press release said, "The economy will probably get worse before it gets better. The sooner we take action to control spending and address the out year budget gaps, the better New York will be in the long run."

NYC Transit President Howard Roberts Jr. doesn't seem to have a very positive self-image when it comes to the 468 subway stations he governs over. In an interview in today's NY Post, Roberts admits that maybe 100 of the stations are in good condition saying, "There's nothing out there that anybody's proud of."