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Governor says deficit reduction plan necessary to save state from ruin

By By JOLEEN FERRIS

Story Created: Oct 15, 2009 at 3:42 PM EST

Story Updated: Oct 15, 2009 at 6:05 PM EST

ALBANY, N.Y. (WKTV) - He said it was painful to draft and knows he'll come under harsh fire for it, but Governor Paterson says his two-year, five-billion dollar deficit reduction plan was necessary to save the state from default.

The plan includes a 10% cut to most state agencies, 4.5 percent cut to remaining, undisbursed school aid for the current fiscal year, and a $1.3 billion cut to local assistance-which would amount to a 10% reduction to all remaining, undisbursed local assistance spending in the current fiscal year.

"This is a very painful plan but we will share the burden. This budget deficit has affected all of us and all of us are going to have to sacrifice in order to save our state," said Governor Paterson.

The plan also includes a tax amnesty plan, which would reduce penalties and interest for long-overdue state tax liabilities. The hope is that this will prompt New Yorkers to pay those overdue tax bills.

As the director of the state workforce, the governor can cut the state workforce without legislative approval. However, he needs the legislature to sign off on his cuts to things such as healthcare and education.

The legislature is set to vote October 27.
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