EdVANTAGE Blog

Yesterday, Governor Paterson and Legislative Leaders reached agreement on a plan to close the $1.6 billion deficit in the state’s budget for the current fiscal year, which ends on March 31.  Bills to implement the plan were then passed by both houses of the Legislature.

The only action in education is a $25,000 cut to a local project.

The Governor’s original 2008-09 deficit reduction plan released back in November would have imposed mid-year School Aid cuts totaling $800 million.  That plan was rejected by the Legislature and the Governor dropped proposals for mid-year School Aid cuts in the revised plan he submitted in December.

Some of the major actions included in the approved plan are an immediate increase in resident undergraduate tuition at the State University, postponing a STAR payment to new york City from December to June, increasing various assessmenst on the health care industry, and imposing tighter controls on some state agency spending.

State leaders will now focus their attention on negotiating a budget for the 2009-10 state fiscal year.  Approximately half the actions in the mid-year plan are expected to produce recurring savings, reducing the projected deficit for 2009-10 from $13.8 billion to $13 billion.