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N.Y. budget
Lawmakers must act in special session
FRIDAY, NOVEMBER 14, 2008
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New York Gov. David A. Paterson has taken on some of the most powerful special-interest groups in the state with his midyear proposal to cut state spending by $2 billion by April to reduce the state's projected deficits over the next several years.

With the state facing a $1.5 billion deficit this year and $12.5 billion shortfall for the next fiscal year, Gov. Paterson followed through on his pledge to spread the pain with recommendations to slow projected spending spread throughout the budget.

Education and health care would bear the largest burden of the reductions with 57 percent of the governor's proposed savings coming in those two categories. But that is understandable since they also account for more than 52 percent of the budget.

On a statewide basis, the increase in aid to public schools in the current budget would drop from 9 percent to 5 percent, which still allows for some growth in state aid. The impact will vary widely on individual districts, which will be forced to make midyear adjustments, dip into reserve funds, or both, to cushion the reduction; but the governor's plan would save almost $1.4 billion over two years.

State university college students will be expected to pay $600 more in tuition yearly, starting with a $300 hike in the spring. Municipalities outside New York would have their aid frozen at current levels this year and not increase next year.

One of the most contentious proposals already rejected by public employee unions is the governor's proposal to eliminate a 3 percent raise for employees, which will require reopening contracts, and defer five days of this year's pay until the employee retires. Unions have already said no to renegotiating pacts, but the alternative will be personnel cuts achieved through layoffs, attrition or retirements certain to affect public services.

Gov. Paterson deserves credit too for his proposal to have state retirees pick up a larger share of their health insurance premiums, 90 percent of which is now paid by the state. Public employees have shared in the fiscal good times and ought to make sacrifices during the economic downturn.

In contrast to Gov. Paterson's courageous leadership, legislative leaders are catering to special interests. They haven't bothered to propose their own plans. They choose to criticize the governor without offering viable alternatives for consideration. Indeed, the Senate may not act at all when the Legislature convenes next week. That would be irresponsible.

Midyear adjustments are difficult to make; some might say unfair, but Gov. Paterson is taking a responsible approach for the long term by seeking to reduce spending this year. The cutbacks will yield greater savings in future years but still leave more than an $8 billion deficit for the next fiscal year.

The failure to slow spending now will only make it more difficult to address larger deficits that could reach $47 billion over the next four years. Gov. Paterson has put forth his plan. Now the Legislature has to start working with him on solving the problem this year.

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