New York Gov. David Paterson said Nov. 15 he will back off a plan to make state residents and business owners buy new license plates next year.

The plan mandated new plates after April 1, 2010. It was projected to generate $130 million in revenue in each of the state’s next two fiscal years.

The plates would have cost $25 when a driver renewed his or her vehicle registration, a $10 increase over current costs. Drivers would have had to pay an additional $20 to keep the same plate number.

The plan was enacted in the current state budget, and it covered cars, trucks, trailers and motorcycles. The state Department of Motor Vehicles unveiled the new license plate design earlier this month.

Public outcry against the mandate has grown in recent weeks. On Monday, 24 county clerks from around the state are rallying at the state Capitol and delivering petitions with 100,000 signatures of New Yorkers opposed to the license plate requirement.

Now, Paterson said he’ll back off the plan for new licenses – provided that legislators brainstorm ways to replace the revenue the state will miss in its next two fiscal years. The state has a projected $6.8 billion budget deficit next year, a figure that will grow if the license plate plan is scrapped.

“If the Legislature works with me ….. to identify real, recurring savings that will replace the revenue that would be lost, I will eliminate the new license plate requirement,” Paterson said.

“We need to act in a fiscally responsible way,” he added.

The top Democrat and Republican in the Assembly issued a joint statement declaring that “the plan to issue new license plates for all vehicles will not go forward.”

As of Monday, no formal votes or action had been taken to eliminate the license plate plan.

(Source: Albany Business Review)