New York Governor Paterson: 8,900 State Layoffs on the Way. Says Budget Deficit Worse than Expected
Gov. Paterson hit New York today with a double-dose of budget woes - saying that the ongoing recession will cut projected tax revenues by a whopping $2.2 billion and that he’ll be forced to order 8,900 state layoffs after unions refused to make any concessions.
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Paterson’s proposed budget, which was released in December, originally predicted a $13 billion deficit.
As the economy worsened over the winter, the budget gap grew to more than $14 billion under the Assembly’s projection in January.
This comes as Paterson’s Budget Director Laura Anglin told The Associated Press this afternoon that the governor is calling for the first state layoffs since the late 1990s after unions refused to even provide any counter proposals.
Anglin said the unions have been informed of Paterson’s decision, but could still try to return to the table over the next week before a budget is negotiated.
The layoffs could begin July 1.
The proposed layoffs would save nearly $500 million over two years.
The new budget gap, meanwhile, comes as Paterson and legislative leaders are trying to conclude the budget talks in hopes of getting an on-time budget by April 1.
The state’s economic problems have a direct impact on the budget.
The state’s unemployment insurance claims hit 39,000 per week this month - up a whopping 20,000 from a year ago, the administration said.
The unemployment rate is expected to hit 8.4 percent by next year - up from 7 percent this past January and 4.4 percent in January 2007
(Excerpt) Read more at nypost.com …
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Comments
Erie County “Tea Party”!
The date? March 28th 2 PM at the Terminus of the Erie Canal.
This “tea party event” focuses on State and County issues, our representation or better yet, lack of representation and their inability to listen and act in our best interest.
http://albanysinsanity.wnymedia.net/blogs/2009/03/03/erie-county-tea-party/
According to liberal philosophy the high unemployment rate is the gov’t’s fault (gov’t should step in to assist)
According to conservative philosophy, the high unemployment rate is the people’s fault (business owners should be creating jobs instead of laying off)
Unemployment is caused by the capitalist system, in which the goal is to rake in as many chips as possible while paying your workers as little chips as possible, thereby making enough money to afford expensive cars and prostitutes.
Conservative capitalist economists should know that this recession is not a failure of the capitalist system, but a product of it. This means that griping about the recession while holding capitalist viewpoints is kind of like complaining about a hole while digging it.
P.S. I am not a socialist or a liberal, i’m a radical centrist libertarian.
The fact that so much of the financial sector operates in New York and is being attacked by Obama, must put Paterson and the rest of New York democrats in a bind. All that bonus money, high executive salary and lavish company spending is drying up or being taken away. Money that New York took for granted until now. Suck it up people, this IS the change you voted into office.