Reduced Revenue Forces Further NYS Budget Cuts

By Norman Gersman

Since the recent release of the proposed Executive Budget, projected state revenues have been reduced by $631 million. In response, Governor David Paterson has just proposed $800 million in additional spending reductions

In addition to ex-Governor Spitzer's five percent cut in non-personal services Governor Paterson now proposes a two percent reduction for all local assistance spending excluding education and entitlement programs in the area of health, public assistance, and others.

These reductions will lower the year to year spending growth of the State of New York from 4.8 percent to 3.7 percent. The State will still have a projected record budget of $123.5 billion.

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