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
You may also like
New Yorkers’ Health Costs Spiral as Officials Take Credit for ‘Savings’
The latest round of health insurance premium hikes announced by New York regulators adds to evidence that state policies are drowning consumers instead of helping them.
Late last mo Read More
How 1199 Earns its Reputation as Albany’s No. 1 Labor Power Broker
For the fourth time in six years, the president of New York's largest health-care union, George Gresham of 1199SEIU, has won the top spot on the "Labor Power 100" list from City &am Read More
New York Runs Away from the Pack on Medicaid Spending
New York's per capita Medicaid spending jumped 14 percent in 2023, moving it further ahead of the rest of the country, recently released nationwide data show.
In the federal fiscal year that ended last September, New York spent $95.6 billion on Medicai Read More
Budget Deal Slows Medicaid Growth But Plants Seeds for Future Spending
The growth of New York's Medicaid spending is projected to slow but not stop as Governor Hochul and the Legislature effectively split their differences over health care in the newly enacted state budget.
Read More
Albany Lawmakers Push a $4 Billion Tax on Health Insurance
Legislative leaders are proposing an additional $4 billion tax on health insurance plans in the upcoming state budget – but withholding specifics of how it would work. Read More
Hochul’s ‘Straight Talk’ on Medicaid Isn’t Straight Enough
Arguably the biggest Medicaid news in Governor Hochul's budget presentation was about the current fiscal year, not the next one: The state-run health plan is running substantially over budget.
Read More
New York’s Medicaid Spending Is Running Billions Over Budget
New York's Medicaid program ran billions of dollars over budget during the first half of the fiscal year, adding to signs of a brewing fiscal crisis in Albany.
According to the fro Read More
As migrants flow to NY, so does red ink
The influx of foreign migrants to New York could cost the state $4.5 billion more than expected next year, Governor Hochul today warned. Read More