Governor David Paterson, Lieutenant Governor Richard Ravitch and State Budget Director Robert Megna once again stressed the state’s dire financial situation during an address on Wall Street today.
Speaking at the Museum of American Finance, Paterson said New York is on the brink of fiscal disaster, calling the state “ground zero for the recession.”
He said the budget deficit stands at $21 billion and that the state may be unable to pay all of its bills at the end of this month.
“We have a ‘lack of cash’ crisis in this state,” Paterson said.
In an attempt to fix this problem, Paterson said he will ask the state budget director to withhold all payments.
“We cannot play favorites with any program, any program,” responded the governor to an audience question.
He said that he is aware he risks getting sued, but that the move is necessary to keep New York out of insolvency.
Paterson said that Wall Street is an important source of the state’s tax revenue, and that not all recent criticism directed at the stock market’s alleged excesses are warranted.
“People in Michigan stood behind the engine of their economy. You don’t hear anybody in New England complaining about clam chowder. You don’t hear anybody in Maryland complaining about crab cakes. If you say anything about corn in Iowa, they’ll run you out of town. If you say anything about oil in Texas, they’ll string you up near the nearest tree,” said the governor. “We need to stand behind the engine of our economy in New York, and that engine of the economy is Wall Street.”
Wall Street bonuses and executive packages were also defended by Paterson, who said they were integral parts of financial executives’ salaries.
At the governor’s prior request to reduce state spending by $3.2 billion, the state Legislature passed a bill earlier in the month that only cuts about $2.7 billion.
(Source: NY1)
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8 Responses
So where’s the hidush? If your expenditures exceed your income, you run out of money. Why should the state government be different than anybody else (except for the Federal government,which owns the “printing press”).
Really akuperma? And tell me why would the state run out of money? Is it because of all the programs? Is it because Shelly Silver refuses to even discuss tort reform so that the insurance costs for the state would go down?
Tort reform has nothing to do with the state going broke. It comes from having too many program and not enough revenue. For example, even though not required to do so, New York has an extensive public university system. It gives all sorts of nice stuff to everyone (frum community included). It is very liberal with aid to the poor (ever notice that most food stores in frum neighborhoods accept WIC and food stamps). New York has an extended and well paid civil service (one of the best sources of employment for frum Yidden). Note that everytime anyone wants to make cuts, everyone (including YWN) starts screaming. Everyone feeds off the public trough, and sooner or later it is bound to run dry.
I would like to know where all the money from the tolls are going to? how can new york be running out of money? come on now, that money is going someplace, in someones pocket, in some rich guys pocket, it is not being managed the right way, in California, there are no tolls on the highway, only here in crazy new york, so new york get your act together,learn how to manage the money.
akuperma====>
I agree with you, However Tort reform is connected indirectly. As of 2005, New York State led the nation with total Medicaid costs of $43.4 billion some $9.5 billion more than second-place California. New York’s average of $2,258 in Medicaid spending for every state resident was also the nation’s highest, well over twice the national average, and far ahead of states such as Massachusetts, Pennsylvania and New Jersey.
Also don’t forget Medicaid fraud, that costing the state $1 Billion.
#4 asks where the tolls are going.
One of the scams that NY pulls is the plethora of “Authorities” that are semi-autonomous from the State. So the Thruway Authority, the MTA, the Port Authority (which is biased to NJ over NY) all collect tolls. Those tolls don’t go into the general revenue stream and the state sees only a portion of the money…except when the Authority runs a deficit and the State (and City) have to pony up more money for them.
Okay akuperma, you are right, no tort reform. But, how about enforcing the anti-trust laws against the municipal workers’ union. You know, your fellow thugs at the S.E.I.U.?
Finally someone realized that Washington is out to ruin New York. We heard Obama cleary say that Wall Street cannot go on being the fulcrum of our economy. Chicagoans have been jealous of NY and now that they are in power are out to belittle it. New Yorkers should make sure Obama knows we are against this and we should try to get him impeached for this.