Paterson to Tackle Dire Budget Deficit in Evening Address
Gov to discuss cuts as next year's shortfall projected to top $6 billion
Updated 1:36 PM EST, Tue, Jul 29, 2008
It's looking like the Seventies all over again for New York state and city, but no one is waxing nostalgic about this trip back in time as officials prepare for a budget crisis of ever-widening proportions.
Gov. Paterson will take the airwaves this evening, in a rare live televised speech, to highlight the impending budget crisis, and to outline the steps state officials will take to stem the bleeding. Next year's budget shortfall was projected to be $5 billion just weeks ago, but news accounts are putting that figure at more than $6 billion and counting.
As the nation's housing bubble worsens and financial markets tumble in the wake, New York is being hit from both sides as real estate taxes and Wall Street profits continue to erode.
Paterson's grim warning comes on the heels of meeting of the state financial control board, which met yesterday, and warned that the city's budget shortfall would hit $2 billion in 2010. And, as if that news wasn't bad enough, the Bush administration announced this week that the next president would take office and face a $490 billion deficit.
First Published: Jul 29, 2008 12:21 PM EST
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