As expected, a debt ceiling deal has been reached between Democrats and Republicans. The plan will raise the debt ceiling by $2.4 trillion through the end of 2012 and calls for $2.4 trillion in deficit reduction. President Obama made the announcement at 8:40 p.m, "This will allow us to avoid default, allow us to pay our bills," but pointed out that the plan needs to get passed, "We are not done yet. I urge members to do the right thing and support this deal with your vote." more ›

Gov. Paterson publicly addressed the state of New York's budget and described it as "too big and too bloated." Belt tightening is the prescribed solution according to the Governor, with state spending to be cut by 5-10% in the latest fiscal year. That is a pretty dramatic reduction, but Paterson was quick to reassure that it was equally important that the state not raise taxes either, noting that many residents were decamping to lower-tax states like Pennsylvania and North Carolina, which were also more affordable. more ›

The Independent Budget Office of the City of New York released a five page report [pdf] yesterday projecting that beginning next year, the City will face a serious fiscal crisis when it runs a deficit of $3.1 billion. By 2011, that budget shortfall could more than double, to $6.3 billion. The projections merely take into account current trends in New York City and don't factor in the possibility of a widespread national recession. more ›