Paterson pitches $5 billion deficit reduction plan

By By The Associated Press

Story Created: Oct 15, 2009 at 12:10 PM EST

Story Updated: Oct 15, 2009 at 2:56 PM EST

ALBANY, N.Y. (AP) - Gov. David Paterson is proposing a $5 billion plan to reduce New York's deepening deficits with across-the-board cuts and measures to boost revenue over two years.

Paterson wants a state spending cap, a cut up to 4.5 percent in this year's remaining school aid and a pension plan for new state workers that's less costly than benefits for current and past employees.

The Democrat says Thursday the state would save $9.3 billion over five years under his plan.

He isn't calling for any tax increases.

The proposal now goes to the Legislature, which would have to
approve any cuts in education, health care, public safety and other spending.

Paterson and lawmakers agreed on a $131.8 billion budget in April that included more than $4 billion in tax increases and relied on federal stimulus funds.

(Copyright 2009 by The Associated Press. All Rights Reserved.)
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