After wavering on the issue in recent weeks, Governor Paterson today seemed to rule out tax increases as part of the solution to the state’s growing budget problem — at least for the next 18 months.

“I don’t think there should be any taxes at this point and certainly not, for the 08-09 budget and the 09-10 budget, we would not consider taxes,” the governor said at a meeting with legislative leaders in New York City.  “The only thing I have said is that I’m not going to say  no to taxes, ever.”

No new estimate of the 2009-10 gap, but the reduced revenue estimates Paterson discussed today would indicate it’s grown to at least $7 billion to $8 billion.

Paterson’s formal statement and the DOB’s latest analysis of the situation today had these highlights:

  • The state budget shortfall for the current fiscal year has been re-estimated at $1.2 billion.
  • The governor will call a special legislative session for Nov. 18, just over six weeks from now, to consider $2 billion in budget reductions necessitated the by the continuing erosion in the state’s fiscal condition.
  • He’ll present his Executive Budget over a month early, on Dec. 16.
  • DOB now estimates that Wall Street bonuses will drop 43 percent in 2009; but Paterson said he personally believes the decrease will be more like 60 percent.

Meanwhile, it’s raining red ink in California, which may soon need a $7 billion federal loan to keep paying its bills.

About the Author

E.J. McMahon

Edmund J. McMahon is Empire Center's founder and a senior fellow.

Read more by E.J. McMahon

You may also like

Another Hochul To-Do: Timely Financial Reporting

The state will spend a record $212 billion in the current 2022 Fiscal Year, under the budget its elected leaders adopted in April. Read More

Sales Tax Receipts Surge Statewide, Filling Local Government Coffers

Local governments across every region of the state raked in robust sales tax collections during the three months that ended on June 30th Read More

Health Research Inc. Turns Over its Payroll Records Despite Claiming To Be Exempt from FOIL

The full payroll records of more than 2,400 de facto state employees are available to the public for the first time after being released by Health Research Inc. Read More

Emergency Billions Pose Opportunity—and Risk—for NYS Schools

New York schools are to post publicly today plans for spending a huge pile of unexpected and unbudgeted cash. Read More

Remote Threat 

Remote work and a more mobile professional class will increase the speed and scope of New York's ongoing out migration. Read More

New York’s Medicaid Rolls Kept Pace with a Nationwide Surge During the Pandemic

New York's Medicaid and Child Health Plus programs added three-quarters of a million enrollees during the coronavirus pandemic, roughly matching the pace of a national surge in sign-ups. Read More

New York’s Hospital Industry Ranks Near the Bottom of Two Quality Report Cards

New York's hospitals remain near the bottom of two quality report cards. The state's hospitals received the lowest rate of any state except Nevada and DC. Read More

New York’s Medicaid and Public Health Crises Get Short Shrift in the New State Budget

In spite of an ongoing pandemic and spiraling Medicaid costs, New York's health-care system received surprisingly little attention in the new state budget. On issue after issue, law Read More


Sign up to receive updates about Empire Center research, news and events in your email.


Empire Center for Public Policy
30 South Pearl St.
Suite 1210
Albany, NY 12207

Phone: 518-434-3100

General Inquiries:

Press Inquiries:


The Empire Center is an independent, non-partisan, non-profit think tank located in Albany, New York. Our mission is to make New York a better place to live and work by promoting public policy reforms grounded in free-market principles, personal responsibility, and the ideals of effective and accountable government.

Empire Center Logo Enjoying our work? Sign up for email alerts on our latest news and research.
Together, we can make New York a better place to live and work!