Governor Presses Lawmakers for Deficit Closing Ideas

By Karen DeWitt

Albany, New York – Governor Paterson has called for a five way public leaders meeting on September 23rd to try to come up with a plan to close the $2.1 billion dollar state budget deficit. The call comes amid signs that some state lawmakers want to put off decisions on deficit closure until more numbers are out, later in the year. Paterson warns that it's dangerous to wait too long.

" I would suggest that shortly, everybody get their act together to address it," said Paterson. "Or we will pay the penalties."

Paterson cites the troubles in other states that New York has so far avoided, including the passing out of IOU's in California, and credit rating downgrades.

Some Democratic Legislative Leaders have told various news outlets that they want to wait for the state's mid year financial reports in October, or perhaps put off decisions until December, in the hopes that the reports of the national economic recovery will be evidenced in New York. Paterson predicts that won't happen any time soon. He says New York usually comes out of a recession 11 to 20 months after the rest of the nation.

The Governor had originally wanted to hold a special session on the date now scheduled for the leader's meeting, and had hoped that legislators would be ready by then to vote on a deficit closing plan. He's asked lawmakers for their ideas, but says he hasn't received any plans. Paterson also did not propose his own ideas. In the past several budget crises, the governor has released detailed plans, but he's also received much of the blame for the bad news about proposed spending cuts, taxes and fees. As a result, his poll numbers have plummeted.

EJ McMahon, with the conservative leaning think tank, The Empire Center, agrees that time is rapidly running out in the fiscal year, and he says it will be more difficult to close the gap by spending cuts alone. He says he worries that the governor and lawmakers will resort to one-shot gimmicks to balance the budget.

"My fear is that they will do that, that they will take the easy way out," said McMahon, who said it would only make it harder to balance the budget next year, when yet another multi-billion dollar gap is predicted.

Governor Paterson has said he's reluctant to increase any more taxes or fees, but has not ruled out one-time revenue raisers.

The Governor, who in the past has preferred to meet behind closed doors with just the Democratic Legislative Leaders, will likely need support from the Republican members of the Senate, as well. Democrats hold a narrow 32 vote Majority, and Democratic Senator Hiram Monserrate goes on trial for felony assault charges Monday. If convicted, he would have to leave the Senate, and the Democrats would not have enough votes to automatically pass any legislation, without the help of at least one GOP Senator.