Yesterday, Governor Andrew Cuomo, Assembly Sheldon Silver and Senate Majority Leader Dean Skelos announced a tentative budget deal that would make huge cuts to Medicaid and education spending—and not involve any new taxes—to keep the budget to $132.5 billion. The NY Times notes a number of firsts, "The agreement, five days before the March 31 budget deadline, offered the prospect of Albany’s first on-time budget in five years. If enacted by lawmakers, the deal would cut the state’s overall year-to-year spending for the first time in more than a decade." more ›

After weeks of fretting and negotiations, Gov. Andrew Cuomo is sealing a deal with the Legislature on a tentative $132.5 billion state budget. State government shutdown (most likely) averted! more ›

Dozens of protesters were arrested yesterday afternoon outside the Albany office of Governor Andrew Cuomo, where they were angrily protesting cuts to CUNY's senior and community campuses proposed in Cuomo's slasher-flick budget. As a "sizable" State Police contingent looked on, some 150 demonstrators marched in a circle in the Senate corridors outside the office, chanting, "Tax the rich, not the poor, stop the war on unions!" Video below: more ›

Schools Chancellor Cathie Black hit another milestone yesterday when she made her first appearance in front of the Legislature in Albany. And, despite some disruption from the audience, the general sense is that she actually handled herself fine as she toed the Bloomberg education line. Good thing too, she apparently spent several weeks preparing for her nearly two-hour stint at the microphone. more ›

Governor Cuomo promised no big tax hikes in his 2011-12 budget but that doesn't mean no tax hikes. Just ask horse racers. Slipping into the budget is a new 2.75% "fee" on gross purses earned at the track (which means horses will need to make a few thousand dollars more to be profitable). In the grand scheme of things the fee isn't very much (and most horse owners lose money on their animals anyway), but it does show just how deep into the sofa cushions Cuomo is reaching for change—now to figure out what else he's found. more ›

Governor Andrew Cuomo presents his first state budget today, and he gave a heckuva of a preview yesterday in an op-ed on how budgets don't work in New York State. As Cuomo presents it, one of the major roadblocks to a "balanced" budget is pinpointing exactly what you are balancing. In many states, and especially in New York State, the budget is weighed down by a number of programs that are designed to increase up to 13% annually, just because they can. Take it away, Andy: "A 13 percent increase, in this economic climate, is wholly unrealistic. Wouldn’t you like your salary or savings account to be based on a formula that gave you a 13 percent increase even though inflation was under 2 percent? The world doesn’t work that way—except in Albany." more ›

When Andrew Cuomo is sworn-in as Governor on January 1, 2011, it probably won't be a million-dollar bash—unlike those of Eliot Spitzer and George Pataki before him. Trying to emphasize the state's budget troubles the Gov-elect instead is reportedly leaning towards a modest affair for family and friends inside the Capitol. Which means, if they really want to go cost-effective, that Cuomo's not-going-to-be-First Lady Sandra Lee should totally cater the whole thing semi-homemade, right? more ›

Yesterday, Governor Paterson, in the waning days of his term, called a special session of the State Legislature, in hopes of getting them to balance the budget. But since actually balancing the budget would require lawmakers to make $315 million in spending cuts, they did nothing. Which is about par for the course when the very same lawmakers needed four freaking months to pass a budget. more ›

Hey, Governor-elect Andrew Cuomo, here's some bad news: According to State Comptroller Thomas DiNapoli, the state budget deficit is about three times bigger than Governor Paterson and the State Legislature projected, weighing in at $1 billion, thanks to "rising Medicaid costs and slower-than-projected tax revenues." Even Paterson's budget director says that DiNapoli's estimate is "not outlandish" and warns Cuomo's team will face “continued difficult choices of perhaps a historic nature." Apparently state spending is four times the rate of revenues, and things are expected to get worse when there are no more federal stimulus funds. more ›

Governor Paterson announced today that he'll be laying off 898 state workers by the end of 2010, in order to reduce the state's work force and save $250 million (the state plans to decrease the work force overall by 2,000). And Paterson laid the blame on unions, for not accepting pay lags or furloughs, "I'm not proud of that, but that is significant progress in trying to make sure there is a shared sacrifice in the deficit reduction and in an attempt to keep our budget balanced. I know that I'll get blamed, and I'll accept it, but the people in the leadership of the public employee unions know that they escorted me here." more ›

Republican gubernatorial candidate Carl Paladino has had some notable missteps lately, but he was back to his signature Albany-sucks rhetoric when discussing how he'd shape up the state's finances. He told the NY Times he'd shut down the government if the state budget is late, "I’m not part of the friends-and-family club; I’m not part of the pay-to-play club; I’m not looking to get re-elected. I’m not looking to go to another office and fill my campaign coffers. I don’t need any friends in Albany except the people of the state." more ›

Most of the attention for this year's election is on Andrew Cuomo and Carl Paladino's fight for the Governor's Mansion, but one big state race that's happening is the one for State Comptroller. The state has serious budget problems, thanks to the poor economy, and the state pension's fund has taken a serious hit as well. Last night, current Comptroller Thomas DiNapoli and his Republican challenger Harry Wilson had a debate where they tried to haunt each other with their pasts. more ›

Thanks to our craptastic state revenue situation, the NY State sales tax exemption for clothing and shoes under $110 ends on Thursday—which means you'll be paying 4.375%—4% for NY State, 0.375% for the commuter tax—starting on Friday. (The city's 4.5% tax is still exempt for items under $110.) Then, on April 1, 2011, the state exemption returns, but only for items under $55; in other words, clothing and shoes under $55 will be tax free in NYC. more ›

It's hard to figure out if Albany's passage of the state budget—originally due on April 1—is a good thing or a bad thing. Here's the AP's lede: "It's four months late and critics say it's so out of balance that it won't hold together, but New York state finally has a budget passed by the Senate," plus, "The fight over the new budget went down to the wire. Senators denounced each other, the governor and even the sloppy wording of the budget bill." Yay, more fighting! more ›

Wait a minute—could breaking a six-year record be why state lawmakers have been dragging their feet on approving a budget? The state budget was due on April 1 and, now, it's freaking August 2. The Post reports, "The latest budget ever was approved on Aug. 11 in 2004, and if an agreement isn't reached on the one remaining budget bill this week, the likelihood is that a dismal new record for tardiness will be set, insiders here agree." Go, Albany dysfunction! more ›

Yesterday's "special" session for the State Senate resulted in nothing—a 15 minute session without a vote—as expected. And don't worry, there's more of that to come, because Governor Paterson says he'll pursue a court order to force lawmakers to Albany to finally pass a budget (which was due on April 1). Capital Confidential reports that Paterson said on the radio this morning, "I would suggest that this duck is quacking, and this duck is swimming." more ›

The state budget was due on April 1, so the State Senate is headed to Albany tonight for a special session. However, it's not expected that anything will actually, you know, pass, because the Democrats have a 32-seat majority (the number needed to pass items) and not all Democrats are expected to show up (Malcolm Smith is on vacation). And while the Republicans could help pass something by agreeing to a Dem-backed plan, that seems unlikely to Governor Paterson, "What the Republicans are doing now is voting no on everything, and then quietly behind the scenes going to all of the donors and special interests and telling them, ‘we’re not hurting you.’ Well they’re not hurting them because they’re not saying anything.’” more ›

Because the state budget was due on April 1 but hasn't been approved yet, state law prohibits legislators from getting paid. And, guess what, going almost four months without pay is hard! But, don't worry, many lawmakers understand if you don't care: Assemblyman Michael Gianaris (D-Queens), who is dipping into his savings to pay for his mortgage, tells the NY Times, "People are rightfully fed up with the lack of effectiveness in state government. I would quickly forgive them for not having sympathy for our personal plight." more ›

State Comptroller Thomas DiNapoli released the the state's June cash report and started the press release with this historic news: "For only the second time in modern history, the state General Fund ended the first quarter of the fiscal year with a negative balance... The state ended the quarter $87.1 million in the red. While tax collections improved from the same period last year, available cash was limited because of $2.9 billion in delayed payments and refunds from 2009-10 that were made in the first quarter." more ›

Remember how Governor Paterson had to personally sign over 6,700 line items for veto last week? Well, his staff delivered them to the Legislature. Paterson spokesman Morgan Hook said, "We are not negotiating. These vetoes have been delivered...at this point, what needs to happen is that the Senate needs to pass a revenue bill and then the budget is complete." In case you forgot, the state budget was due on April 1. more ›

Veto-palooza is over—for now. Yesterday, Governor David Paterson completed his marathon of vetoing 6,709 line items that the Assembly and Senate added to his budget. The madness began on Thursday, with Paterson offering his initials to veto over 4,000 porky items; yesterday's session was at the Governor's Mansion, with Paterson knocking out about 2,000 items. According to the Daily Politics, "That's more than $500 million in additional spending he slashed as well as nearly $200 milliion more in member items approved in previous years but still not paid by the state." more ›

Here's what's happening stagnating in Albany: Yesterday, as promised, Governor Paterson spent six hours hunched over a table vetoing by hand 4,700 earmarks that the legislature had included in an education bill. These items, commonly known as pork, range from a few thousand to a few hundred thousand dollars, and "are typically distributed by lawmakers to nonprofit and civic organizations in their districts," the NY Times reports. There was a web-cam set up to watch the "veto-palooza," as the Post puts it, and today Paterson is expected to finish the job by signing another 2,200 line item vetoes. more ›

Last night, the State Assembly and Senate voted to approve a budget that would restore hundreds of millions to education and health care, but then hours later, Governor Paterson said he'd veto every single one of the over 6,900 items. According to the Times Union, "The governor will have to initial every rejected item personally -- with no mechanical help. At the rate of one line-item veto every five seconds, that means the governor will have to spend almost 10 hours straight on the project -- and that's without bathroom or meal breaks. Paterson has 10 days to complete the project." Paterson's spokesman was able to joke, "We'll set up a webcam," while the governor himself said, "If I start now, I figure I should be finished before I leave office." more ›

When Governor Paterson called for a special Sunday session to discuss the long overdue state budget (it was due on April 1), lawmakers did head back to Albany. But this is what happened, according to the Times Union: "The Senate and Assembly gaveled in and out in "extraordinary" sessions that, added together, totaled less than 10 minutes," and "ignored every item on the governor's to-do list... Paterson had asked them to address plans to revamp SUNY's tuition schedule and set up a contingency fund for a potential $1 billion federal shortfall in Medicaid funding." more ›

Today, Governor Paterson is calling for a special Sunday session for the Assembly and Senate to discuss the NY State budget, which was due on April 1, because the Assembly and Senate have struck a budget agreement that ignores many of Paterson's proposals to close a $9.2 billion budget gap. According to NY1, "The agreement reached by Assembly Speaker Sheldon Silver and Senate Democratic Conference Leader John Sampson restores $600 million to state school aid. Another $683 million in health care cuts that were proposed by Governor David Paterson were also restored, including $46.8 million in Medicaid cuts... The agreement does not address how the state will raise revenue for the restored aid, but Democratic sources said that does not need to be immediately figured out." more ›