Governor Paterson Announces Budget Cuts

Albany, NY  --  Governor Paterson says more budget cuts are necessary to deal with New York's burgeoning budget gap.  Today, Paterson announced plans to make five-billion dollars in budget cuts over a two-year period.

Here's Mike Watts reporting...

The governor says his deficit reduction plan would eliminate the state's current three-billion dollar budget deficit for this year and would ultimately produce a savings over nine-point-three-billion dollars over the state's five-year financial plan period.  Paterson says he's not raising taxes and will institute major reforms such as a state spending cap as part of his proposal.

His plan calls for one-point-eight-billion dollars in spending reductions across the board in the state this year, with education and healthcare taking a large chunk of the hit with budget cuts of 686-million and about 500-million respectively.  Paterson says he's sensitive to any cuts regarding education and healthcare, but says the only way to reduce the state's deficit is to make cuts in every area.  More cuts are coming to social service programs, transportation programs and higher education.

The governor says making these kinds of budget cuts gives him pain that is "indescribable," and he says he expects to come under harsh criticism, but says he has to make tough choices to keep New York from going into default financially.  He calls New York "Ground Zero" for the rough financial times that are being felt all over the country and says its his job to make sure the state doesn't get into the financial trouble that is plaguing other states in the nation.  Paterson's proposal now heads to the state Legislature.

Governor Paterson announces his budget cuts plan. Paterson says his deficit reduction plan doesn't rely on taxes. Paterson says the budget cuts will affect all agencies around the state. Paterson says education and healthcare agencies are taking a big chunk of the hit.

Paterson says he understands folks will be upset that millions of dollars are being cut from education and healthcare. Paterson says it was inevitable that New York would end up in potentially dire straits financially. Paterson says he knows he'll be criticized, but he is working to keep New York in better shape than many other states in the nation.