Governor Andrew Cuomo has confirmed that he's planning big state worker layoffs. The NY Times' sources had suggested there would be 15,000 layoffs, Wall Street Journal put the number at over 10,000, but Andy's not talking. All he said today was, "The chickens are coming home to roost. So the state is in really dire financial shape, and we’re going to have to make corrections. We shouldn’t have been doing this for years, by the way — we’ve been spending too much money for years." more ›

Yesterday, the NY State budget director issued a memo to stage agency heads, telling them to start firing, "Despite our best efforts the state is falling short of its financial plan targets... You will be given the discretion to use layoffs as a part of this reduction in work force." The memo also said, "We must acknowledge the continued weakness in the overall economy and in state revenue. It is our responsibility and imperative to achieve greater efficiencies in all aspects of our operations, including the work force." However, the Civil Service Employees Association union says the state promised not to lay off employees. more ›

The State Legislature is slowly edging towards agreement on a budget as state lawmakers agreed to Governor Paterson's emergency bill which has $775 million in cuts and other actions in the state's health care budget, a move that keeps the government open for another week. Of course, the Times Union notes how one Assembly member called it "gubernatorial blackmail," because of how hard it'll hit hospitals. more ›

A federal judge has blocked the mandatory, one-day-a-week unpaid furloughs of NY state workers which was approved by the state legislature Monday. Yesterday, three unions filed lawsuits requesting an injunction against the furloughs, which would have begun next week. U.S. District Judge Lawrence Kahn says that until he rules on the lawsuits, the state is temporarily blocked from implementing any furloughs, the AP reports. In his decision, Judge, um, KAAAAHHHN said that the unions have shown a permanent 20 percent loss in wages or salaries would constitute irreparable harm. At press time, it was unclear if this court order means Paterson's publicists can get their raises again. more ›

Last week, Governor Paterson floated the idea of furloughs where 100,000 state employees would stay at home—and not be paid—for one day until a budget was passed. But now the state's top labor lawyer Terry O'Neil says, "You can tell people to stay home one day but you can't cut their pay." However, O'Neil did say that all state employees' pay can be frozen if the Legislature declares a financial emergency. The Times Union reports that Paterson, who has already withheld a 4% pay hike for the state's major unions, is still considering furloughs, "We haven't made a final decision; we wouldn't rule it out." more ›

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 ›

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 ›

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 ›

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 ›

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 ›

Rudy Giuliani popped up once again this week, to chat with Glenn Beck (on April 1) about attorney generals going after financial firms and to chat about the opening of the new Yankee Stadium on Good Day New York. more ›

The massive $131 billion NY State budget was finally passed yesterday. While the Assembly—with its big Democratic majority— passed it before the deadline on Tuesday night, before the Wednesday deadline, the Daily News reports, "Frustrated Senate Republicans, angry at being shut out of the process, debated most bills for hours," which extended the process (the Senate Democrats have a 32-30 majority). According to the NY Times, the Republican lawmakers called the budget "disastrous,” “sheer lunacy” and “laden with pork and patronage," and even Senate Majority Leader Malcolm Smith admitted the secretive process was problematic, "We have to do better." In spite of Governor Paterson's earlier promises to cut spending, this budget is 9% higher (including federal stimulus money); Paterson was positive, "If the legislature can maintain this type of discipline over the next few years, then we can actually see the light at the end of the tunnel," but in the Wall Street Journal, E.J. Mahon says that light is "probably an oncoming train." Well, at least Rush Limbaugh is moving, right? more ›

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." more ›

A marketing effort, protesting Governor Paterson's proposed health care cuts, from Greater New York Hospital Association and health care union 1199 is blasted as a "low blow" by the NY Post and gets a NY Times editorial. Referring to how a wheelchair-bound blind man asks the governor, "Why are you doing this to me?" in a TV ad, the Times writes, "A better question should go to the health unions and hospitals paying for these ads. Mainly, why are you doing this — again? Frightening citizens and trying to intimidate officials working to make sense of health care spending and balance the state budget fairly?" State Department of Health Commissioner Richard Daines wasn't amused by the ads, "There's a passage in Jeremiah that says something like, 'Foolish people who even having eyes do not see.' I think we're really concerned about people who have the eyes to see the problem and aren't choosing to see them." more ›

The Greater New York Hospital Association and health care union 1199 have unveiled a campaign protesting Governor Paterson's proposed cuts to health services and hospitals around the state. Politicker NY reports, "A mailer being sent to a million homes juxtaposes Paterson's name with a sad-looking woman hovering over a hospital bed." And the NY Times notes how in the TV ads, "nurses and patients take a personal swipe at the governor, imploring, 'Why are you doing this?' At one point, a nurse says, 'I can’t believe Governor Paterson is the one making this proposal.' Then a man, blind and in a wheelchair, asks the governor, who is legally blind, 'Why are you doing this to me?'" More details about the campaign at the Protect Health Care website and here's how Paterson proposes to cut health care spending. more ›

Governor Paterson introduced a budget, full of tax hikes and fees for things like regular soda, beer, movie tickets and online music downloads in addition to big cuts to education spending, to combat a $15.4 billion budget deficit this year and next. Many critics have argued that these taxes—aiming to raise $4 billion—are hitting regular people, and now Governor Paterson tells the NY Times the rich may be taxed. more ›

more ›

A spokeswoman for Governor Paterson revealed that the governor only yesterday learned of the high price tag antique rugs bought for the Executive Mansion over the summer. His administration also denied all requests from the press to see the rug, that now has been revealed to be one of five purchased--for a total of just under $38,000. Assemblyman James Tedisco has already called on the governor to return the expensive carpeting. But once again the Office of General Services was defending the purchase saying, "We have to keep that mansion in the kind of condition it's in because it's a treasure to the public." And the general manager at Stark Carpeting, where the first rug was discovered to have been bought for over $20,000 defended the governor for actually being a spendthrift by not purchasing a $150,000 carpet, "They could have had the Bentley instead of the Ford." more ›

With a state deficit that could reach 15 billion by the end of next year, what's another $20,000 spent on a fancy carpet for the state house? That's how much was shelled out by Governor Paterson for the antique Turkish rug purchased from Spitzer/Paterson campaign donors Stark Carpet located on 3rd Avenue here in Manhattan. With the governor's almost singular issue over the last few months being the state's budget crisis, the purchase has naturally raised some eyebrows. But Brad Maione, a spokesman for the Office of General Services defended it saying, "(The governor's mansion) serves as a public space that in many ways is a museum open to thousands of visitors and school children each year." The Times-Union notes however that unless there's a public event, most days it remains closed to the public. more ›

Yesterday, Governor Paterson had a "secret" meeting with Assembly Speaker Sheldon Silver and Senate Majority Leader Dean Skelos to discuss the state's severe budget crisis. And apparently it didn't go very well: The NY Times reports that they "failed to reach a resolution...throwing into doubt the chances that an agreement could be reached" before Tuesday's emergency legislative session. Paterson, whose proposed budget cuts would hit Medicaid and schools the hardest, blamed Skelos, stating, "It was clear from the meeting that Majority Leader Skelos has not changed his position," but the Senate GOP said, "We are being called to Albany by the governor to act on specific bills, which he has yet to send us." And even some Democrats may be uneasy, since the plan hits hospitals and schools. more ›

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.” more ›

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." more ›

In about two hours, Governor David Paterson will unveil his recommended budget cuts and everything is expected to be hit. Paterson has been giving town hall meetings across the state about the budget crisis (as in a $12.5 billion deficit next year, ballooning to $47 billion by 2012) and said yesterday in Syracuse, "This is not a reality TV show. This is not a game. This is a very serious situation and involves the survival of the people of New York and the quality of their lives... That's as if I asked all of you to go home and cut 25 percent of your spending in your household, after taxes. That would give you a more realistic idea of how drastic these cuts in spending are going to have to be." Besides rumored cuts to health care and schools, a gas tax hike could be considered. more ›

After Governor Paterson made it clear he may cut billions from Medicaid and schools, the critics came out. Teachers union head Randi Weingarten tells the Post, "Core public services such as education and programs for the most vulnerable in our society must be maintained," and the Greater New York Health Association's Kenneth Raske says to the Times, "We will fight in an animated and energetic way if somehow health care is being targeted, because lives are at stake here." Well, Paterson will unveil $2 billion in cuts tomorrow morning; his office released a statement saying, "This proposal, as well as our executive budget in December, will include reductions across virtually every area of state spending. Given the magnitude of this crisis, the only way we are going to be able to get New York's fiscal house in order is through shared sacrifice." more ›

The state's fiscal crisis is so dire that Governor Paterson confirmed he "would almost certainly seek billions of dollars in cuts to Medicaid, as well as midyear reductions in school aid," according to the NY Times. Paterson said, "There’ll be protests, and because of the drastic nature of the cuts, those who protest will have very valid points, for which I don’t have any answer, other than ‘What’s your idea?’ We’re not going to close a $12.5 billion deficit with 5 percent cuts to health and education.” Unions (and the Republicans) are likely to fight the cuts, but Paterson said he was ready to take drastic measures, "I don’t need a protest for it to bother me; I used to fight for some of these causes... I'll feel pain in my stomach but my conscience will be clear." more ›

Governor Paterson continued his series of bad news about state economy by predicting the deficit to grow to $47 billion by 2012, thanks to the falling financial markets and NY State's own overspending. And for next year alone, it will grow to $12.5 billion--the current deficit is $1.2 billion--and that number is basically double what his administration previously projected. Paterson hasn't made any decisions about how the state will deal with these escalating costs, but he did say yesterday, "When you're in that amount of trouble, everything is on the table, not because you want it to be, but because it's the only way to manage. It is a crisis, and a crisis means that everyone has to be accountable and everyone has to sacrifice." more ›

since March) means the Legislature is coming back to Albany for an emergency session (during this time, lawmakers are usually in their district offices). The AP says with Paterson's desire for deep cuts and opposition from both unions and Assembly Democrats, the pols--Democrats and Republicans alike--could be making "some of the hardest decisions of their political lives, together. Or, nothing may happen" given Albany's long tradition of doing nothing. The NY Times has an editorial, supporting Paterson's point-of-view, "It’s a revolutionary idea in Albany, but maybe the state’s lawmakers could impress voters by saving taxpayer money, not just spending it." more ›

After noting that the NY State is facing a fiscal crisis on Tuesday, Governor David Paterson took the bad news to Washington D.C. Paterson said at the National Press Club that the federal government needs to help invest in things like infrastructure, schools, mass transit and job training, pointing out NY State sent $82.6 billion more to D.C. than it got back. Senator Chris Dodd told the NY Times, though, there just isn't money. On a much lighter note, someone in the audience asked, "Your rise to the governor's seat is, if anything, an illustration of the fallibility of our public officials. What lessons do you draw about the imperfection of politicians?" to which Paterson began, "Be careful when you come to Washington..." more ›