Update on state budget woes
October 7th, 2009 by Robert Lowry
Governor Paterson announced yesterday that he was directing state agencies to reduce their non-personnel spending by a total of $500 million (11 percent) as a first step toward closing an estimated $3 billion budget deficit in the state’s current fiscal year.
This is a reduction in agency spending for supplies, equipment, travel, and contractual services — not in grants to schools or other local entities.
The State Education Department’s target is $5.38 million.
The Governor has taken some criticism for not advancing specific recommendations for closing the current year deficit. Reportedly, there are divisions within the administration, with Lt. Governor Richard Ravitch and Budget Director Robert Megna advocating more aggressive action to address the state’s budget deficits.
By law, the Governor’s Budget Division issues quarterly updates on the state of the state’s finances. The next report is due before the end of this month.
Yesterday (Tuesday), the Governor said he would propose specific cuts, if negotiations with the Legislature fail.
The Albany Times Union reported,
The Assembly and Senate, Paterson said, “are going to need a menu of cuts to make. I’m letting them participate in formulating that menu. And if they don’t come up with one quickly enough, I’ll provide it myself.”
I served as Governor Cuomo’s education aide during his last three years in office and had to explain and defend our proposals for education budget cuts. (Point of personal privilege: my tenure started after the 1990 mid-year cuts and steep aid cuts enacted in 1991).
Speaking with unhappy constituents, I would sometimes observe, “The Legislature gets the benefit of our experience.” By that, I meant that the Legislature had the opportunity to weigh public reactions to our proposals before making its own budget decisions.
By offering the opening proposals, Governors invite a pummeling upon themselves. But it also creates a more open and transparent process, rather than negotiating in secret with Legislative Leaders, presenting the public with a “done deal.”
Category: Finance, State Budget, Uncategorized | 1 Comment »