Paterson seeks hiring freeze, spending cuts

Story Created: Jul 30, 2008 at 9:41 AM EST

Story Updated: Jul 30, 2008 at 10:08 AM EST

ALBANY, N.Y. (AP) - New York Gov. David Paterson wants to freeze hiring and cut state agency spending by an additional 7 percent to address the state's economic crisis.

A budget document he s about to announce lays out specifics to
address a budget deficit he projects will hit $26.2 billion in three years because of high state spending and declining revenues, including a 97-percent drop in banking taxes from a year ago.

He will also seek measures that have failed to gain support in the Legislature, including privatizing some state assets and resources. One of the most ambitious proposals, made a year ago by former Gov. Eliot Spitzer, would privatize the state lottery, providing the state with billions of dollars up front and billions more over the life of the contract.

(Copyright 2008 by The Associated Press. All Rights Reserved.)
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