The first time around Albany went into special session we saw nearly half a billion dollars in budget cuts. Now that everyone is screaming in horror at the crisis on Wall Street and paper assets are being wiped out left and right, Governor Paterson is back at it with his budgetary axe. This time around a mere half a billion isn't enough, now we are looking at two...billion....dollars!
From The NY Times:
In a meeting with legislative leaders that was at times remarkably testy for what are often scripted affairs, the governor said he would call the Legislature back to Albany — but not until after the election — to reopen the state budget. The governor and lawmakers agreed during a session in August to cut $427 million from this year’s budget, but recent turmoil on Wall Street has opened an additional $1.2 billion hole, and the numbers are expected to worsen.
While Mr. Paterson and legislative leaders have warned that the Wall Street crisis would have a magnified impact on New York, the extent of the damage is only beginning to emerge.
Preliminary tax receipts released this week by the state comptroller’s office showed that revenue in September from sales, business and other taxes declined by about 7 percent, or $154 million, compared with September 2007.
Tax receipts are expected to get worse, Mr. Paterson said. Tax revenue from Wall Street bonuses, expected to be down sharply this year, will not be counted until early next year.
Not only that, but our financial rating could be downgraded and borrowing costs could rise. Of course that is terrible news for the state of our state's economy and I'm not knocking the seriousness of this at all. What I am knocking is the ridiculousness of the situation on the state level when compared to what is going on 250 miles to our southwest in Washington, D.C.
How is it that New York, being in the center of this crisis (you know, Wall Street is in Manhattan and not a magical mythical place that politicians can crusade against from afar) is expected to weather this financial storm with no help from the Federal government. Congress just gave the wealthy bastards who screwed everything up $700 billion and our state gets jack shit. How is that fair? Can someone tell me, because I'm obviously out of the loop.
Oh wait, will this "trickle-down" to the rest of us? Is that the plan, because if it is....if this is another endorsement of the failed policies that originated with Reagan and his neo-con nut brigade, I'm gonna explode.
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