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."
This comes a day after State Comptroller Thomas DiNapoli's announcement that the NY State deficit was now $4.1 billion, warning, "This budget simply has not held together. Most New Yorkers understand they cannot spend more than they make. The state needs to adopt that kind of common sense. If we stay on the current path, New York will run out of cash. This situation must be addressed."
Why is NY State in so much trouble? The NY Times explains, "New York is facing a combination of ills, including the troubles on Wall Street — its main revenue engine — rising unemployment and shrinking tax collections. And the problem is likely to worsen soon, when federal stimulus spending and the state’s increased taxes on the wealthy both expire and state spending is projected to soar." The question is whether the State Legislature will go along with the latest budget cuts that Paterson recommends.