October 15, 2009
FOR IMMEDIATE RELEASE
Strong Responsible Leadership from Governor Paterson
Governor David A. Paterson today called on the State Legislature to enact his two-year, $5 billion deficit reduction plan and to work with him as he makes the hard decisions necessary to turn New York’s economy around.
“Governor Paterson is a leader with the vision and determination to make the tough choices that are needed to secure New York’s future and with the fortitude to get the job done,” said Jay Jacobs, New York State Committee Chair.
“The Governor’s bold plan, which will eliminate the current-year budget gap without raising taxes, is a critically needed wake-up call and deserves the full-support of the State Legislature. Governor Paterson knows that we need to make sacrifices now to ensure a brighter, more prosperous future for hard working people across the State of New York.”
Governor Paterson outlined an aggressive, wide-ranging $5 billion Deficit Reduction Plan that includes the following near-term saving actions to close the State’s mid-year deficit and long-term structural reforms to help lower taxpayer costs:
- Across-the-board spending reductions of $3.8 billion over the next 2 years.
- A Tax Penalty Forgiveness Program for a savings of $350 million.
- Additional Administrative savings of $295 million.
- Transfers of excess revenues from the Battery Park City Authority/Dormitory Authority for a savings of $326 million.
- $100 million in savings by transferring proceeds from the Regional Greenhouse Gas Initiative (RGGI) and monies from the Environmental Protection Fund (EPF) to the General Fund, while still allowing the State to meet its commitments to the Green Jobs legislation its original (EPF) cash spending plan.
- $200 million in franchise payments in the 2009-10 fiscal year as a result of winning the bid for the Aqueduct Video Lottery Terminal.
- Tier V pension reform, producing nearly $50 billion in savings over the next thirty years for State and local governments.
- A Cap on State operating fund spending limiting any increases to the average inflation rate over the previous three years.
The Governor’s plan does make exceptions for education, limiting reductions in School Aid, and excludes the STAR property tax relief plan and cuts that represent direct mandated cost shifts to local governments.
Contact: Edgar Santana, 212-725-8825 / email@example.com.