NY Democrat guv’s “hard times” speech
Well, this is progress. NY Democrat Gov. David Paterson gave a straight-talk speech yesterday at a press conference to assess hard economic times ahead– and to call on his state to tighten its belt in the face of out-of-control spending and Wall Street woes. The Empire State’s budget deficit will hit $6.4 billion . Paterson has called the state Legislature back into an emergency session next month and is putting an emphasis on cuts, cuts, cuts rather than taxes, taxes, taxes. For now, anyway:
Citing belt-tightening by many families because of the economic downturn, Gov. David A. Paterson yesterday ordered an emergency session of the State Legislature on Aug. 19 to cut spending in the face of growing deficits and provide aid for hard-pressed residents.
Paterson, in a five-minute speech carried live by television stations, said the projected budget deficit for next year is $6.4 billion, up $1.4 billion from May 1 because of smaller tax collections from the financial services industry.
And the combined shortfall for the next three years is $26.2 billion, a 22 percent jump in the estimate from three months ago.
He also said tax receipts from the state’s 16 largest banks had dropped to $5 million in June, compared with $173 million a year earlier.
“The damage on Wall Street is infecting all of our communities and its effects on our New York State finances are devastating,” Paterson said, alluding to New York’s dependence on the world of high finance. “This situation will get worse before it gets better. But the time to act is now.”
He said he was mulling further cuts to state agencies beyond an earlier 3.35 percent reduction, selling or leasing state assets and “addressing the size of the state workforce” – a reference some took to mean layoffs.
However, Paterson wasn’t clear about whether lawmakers would be asked to make midyear cuts in the $122-billion state budget as was done in 1990, including reductions in school aid.
He was expected to provide more details in a speech today in Manhattan and one in Washington tomorrow.
The NYPost offers cautious praise for Paterson and contrasts his approach to RINO Mayor Michael Bloomberg, who is adopting an everything-but-cuts plan to deal with NYC’s financial crunch.
Adversity exposes true colors.
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Maybe he can fire all state workers and replace them with illegal aliens.
Seriously, it may be that state and local governments are finally realizing that — unlike drilling — you cannot tax your way to prosperity. Jacksonville is having a hard time figuring that out, even though Tallahassee told them to suck it up.
We’ll see if Patterson really can pull this off, and do some real good in NY. I’m skeptical, but willing to give the guy a chance in the face of his speech.
Well, it’s not like we can say a Dem finally saw the light.
Paterson in off the record comments stated “I just didn’t see this coming”.
On July 30th, 2008 at 11:00 am, tmkeith said:
Well, it’s not like we can say a Dem finally saw the light.
So mature, making fun of someone with a handicap. Trip any old ladies today?
Typical liberal. Glass is always half-empty.
The “big govament” wonks got their wish. They’ve created the welfare state and now they have to support it. Unfortunately, all these schemes use OPM.
B@5t@rd5!
I have to say I am shocked to hear that coming from a Democrat. But, like abstractmind said…
Well at least it wasn’t a fire side chat, those were so stupid.
Better not put up state and city tax any higher, we NYCers are already the highest taxed citizens in the US I believe! If it gets any higher, personally we will be looking at relocating, because while expenses have been escalating, we still have a housing shortage here so rentals have not dropped even though house prices nationally have. In fact our rent goes up yet again effective 1st August. Also jobs are drying up with the financial downturn, so there are a surplus of qualified workers, and jobs that were paying say $70k a year or two ago are now at $45k
2008 NY State Budget – $122 billion
2009 Projected NY State Budget Deficit – $6.4 billion and growing
2009, ’10 and ’11 Projected NY State Budget Deficits – $26.2 billion combined and growing
Tax receipts from NY State’s 16 largest banks – down $168 million in the last year and dropping
Kudos for the Governor in spelling out this looming disaster and suggesting responsible budget cuts instead of knee-jerk tax (spending) increases.
I predict the same ol’ time honored, liberal NYC tradition: financial industry gets whacked, top source of tax revenue dries up, NYC Council and labor unions demonize NYC Mayor and Governor, fight budget cuts every step of the way, end up with education spending increases in the name of “the children,” first responder city services (police and fire) get cut first, crime skyrockets in “minority” neighborhoods first, police shoot straight A student (drug-dealer) in the back, bodega owner shoots straight A student (shop-lifter) in the back, WW III breaks out, Al Sharpton ends up getting more face time than mayor and governor combined, whites follow the jobs to NJ and move out, property values drop, prostitutes make their daytime appearances again at all cross-town streets adjacent to bridges and tunnels, economy swings back up, financial sector slowly rebuilds, young, white college graduates move in for entry-level jobs and to take advantage of lower rents, City elects a fiscally conservative mayor, Wall Street returns…economy skyrockets…real estate bubbles again…
Repeat process.
Dear Environmentalists,
Don’t worry. Just before I cross the state line, I’ll make sure to turn out all the lights.
Signed,
The Last Person to Leave New York
*out*
This deficit was not foreseeable during Patterson’s election 18 months ago?
Why did the state news bureaus not know about this story before now?
Now, Gov. Patterson is being praised for “straight talk?”
Patterson was the NY State Senate Minority Leader from 2003-2007, and Lt. Governor and Governor after that.
Shouldn’t we condemn Patterson and the state media for incompetence?
You’re right. Maybe I’m guilty of practicing the soft bigotry of low expectations, but I’m just too floored right now that a liberal democrat in NY is actually suggesting budget cuts over raising taxes to tackle this debacle.
You are correct in holding the Governor and other State officials responsible for obviously delayed action. After all, they are paid to watch, respond and avoid the light at the end of the tunnel.
I’m with the Post on this. I was very happy to hear him pushing cuts. For now, he gets half credit for speaking this way. He’ll get the other half if cuts actually occur!
It would be absolutely correct to hold the Gov. and the legislature accountable for the issue.
In the case of Patterson, I would judge the amount of accountability in regards to how long the problem has been going on during his watch. I am not familiar…how long has he been there? If he’s new (first term including spitzer’s stint), or has he been there longer.
A free house, taxes paid, all that, and they blew it.
This is why handouts don’t work. If you don’t earn it yourself, you don’t have anything to lose.
U-N-I-O-N-S
So higher pensions, less years. Makes sense. Crippling economy and asking for more benefits. Sure, Why not.
You know what. Everyone look at Buffalo, NY and what the Unions did to it. Built it and then destroyed it. The same will happen to the whole state if these bills become law.
Or we could just stop handing out benefits & health care to people who are not supposed to be here in the first place…
#16 abstract said:
Oh, he’s neck deep. He was Lt. Gov. before this and a State Legislator for as long as I can remember.
I also don’t have any confidence in his proposed leadership on this matter. Once the Unions start screaming, he’ll fold quicker than a cheap camera.
What NYS needs right now is a governor who can tell the unions to all go to hell before we have another one of these.