New details tonight on the deficit debate in New York State.Governor Paterson and legislative leaders meeting to talk about suggestions to close a $3 billion gap without causing too much damage to the state's economy.
Non-lawmakers don't think that's going to be possible.
Governor Paterson and legislative leaders met Wednesday for the first time since he introduced his deficit reduction plan, and while all sides don't agree, there's definitely room for compromise.
The governor is calling for a total of $5 billion to be cut over the next two years to close this year's deficit and minimize gaps in future years.
He says it needs to happen in a matter of weeks or the state could default on billions in payments.
Governor David Paterson/D-New York: “Our progress is being watched not only by the rating agencies but by the people of the state of New York. They expect us to limit our spending and shut down this deficit.”
Sheldon Silver/D-Assembly Speaker: “This deficit is not about political bickering but it is about all of us realizing our obligation to govern responsibly in this state.”
Sen. Dean Skelos/R-Minority Leader: “We're seeing the results of overspending and certainly much of it was irresponsible and we're seeing that it's unsustainable. The best way to stop New York's spending problem, and we heartily support your recommendation, to have a hard spending cap.”
At the same time, the Assembly Ways and Means Committee held a public hearing on the governor's plan - hearing testimony for and against, but mainly against.
Frank Mauro/New Yorkers for Fiscal Fairness: “There can be a lot of arguments for his plan but he has to acknowledge that even if his plan helps with cash flow and helps with the credit rating, it's going to hurt the economy and the question is, how much is it going to hurt the economy.”
Still no date for a special session to take up this deficit reduction plan, but it could happen in the next two weeks, and the governor is also calling for an opportunity to address a joint session of both houses about the plan.
