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Longtime Burlington, Vt. Mayor Miro Weinberger will not seek re-election

Paterson Makes Cuts, Says New York Is Out Of Cash

By Dave Lucas


Albany, NY – Governor David Paterson today unveiled more budget-cutting plans - including reducing aid payments to schools and local governments - as we hear in this report from Capital District Bureau Chief Dave Lucas.

Speaking at the Museum of American Finance in New York City, Paterson came on strong in his defense of Wall Street and the financial sector. "I am directing the division of the budget to limit payments so that we will have the cash to pay our debts. I will continue to withhold payments until this economy is leveled off. I will probably be sued for this, but I will not let New York state run out of money on my watch," Paterson said.

The governor says New York won't be able to pay about one billion dollars worth of bills at the end of December. After lawmakers recently agreed to cuts of about $2.8 billion, Paterson warned it wouldn't be enough: he has decided to direct budget leaders to cut aid payments to schools, local governments, and non-profits until things improve.

Budget Director Robert Megna says the state faces a negative general fund balance of more than $1 billion at the end of December, which would be a first for New York. He explains that the state remains mired in a deep sustained recession which has caused tax revenues to plummet and has created budget deficits of unprecedented size.

Paterson's budget for the fiscal year beginning April 1, 2010, is due in January.