Thread: New York City could be hardest hit if

New York City could be hardest hit if state drives off a cliff and runs out of money by December

BY Kenneth Lovett
DAILY NEWS ALBANY BUREAU CHIEF

Thursday, November 12th 2009, 4:00 AM
Gov. Paterson has been warning that the state needs to close this year's deficit to avoid harder choices in the near future.
Ward for News
Gov. Paterson has been warning that the state needs to close this year's deficit to avoid harder choices in the near future.

ALBANY - The state's Doomsday Budget scenario is a scary place.

"Cuts to homeless shelters, cuts to libraries, domestic violence centers, probation centers, closing state parks. It could really decimate the core of New York's services," said Elizabeth Lynam of the Citizens Action Commission.

"If we continue spending at the same rate and revenues continue falling at the same rate, we will drive right off the cliff."

She said the Legislature's failure to enact a plan to close a $3.2 billion budget gap is far more serious than an accounting matter.

If lawmakers do nothing, the state would run out of money next month - and the city could be hit hardest of all.

Mayor Bloomberg has said he has no intention of raising taxes - unless Albany guts funding to the city.

Still, he warned city agencies yesterday they will have to cut budgets by January to erase next year's $4.9 billion budget gap.

"My intent would be not to hold anybody harmless," he said. "Everybody's going to (have) to participate."

This will be the seventh round of city cuts since 2007, trimming a combined $3.2 billion in annual costs.

State hospitals and schools, already fighting Gov. Paterson's proposed cuts, fear delayed payments they rely on to make payroll and fund their programs.

"We are crossing the Rubicon of financial ruin right now," Paterson told the Daily News.

Paterson has been warning that the state needs to close this year's deficit to avoid harder choices in the near future.

His call for action in a special session he called Tuesday went unheeded. He called lawmakers back next week to try again.

The state's first test comes next month.

That's when the state must make payments of $1.6 billion to schools, $2.5 billion to the school property tax relief program, $800 million in Medicaid commitments and $500 million in municipal aid.

Without budget relief, the state projects its general fund, from which it pays its bills, would end December $1.1 billion in the red.

The state could cover December's bills by borrowing money from other parts of the budget - but that would leave just $36 million on hand.

If revenue and Wall Street bonuses don't live up to projections, the state could have to delay paying bills in January, budget director Robert Megna said.

That means school districts, vendors and local governments may get IOUs, like in California.

New York has avoided drastic actions other states have taken.

California wants to borrow from the feds. Arizona sold state assets back to itself. Hawaii shortend the school week. New Jersey furloughed state workers.

"We're clearly in better shape than California, but if we fail to act now ... we can very quickly deteriorate," Megna said.

Senate Democrats opposed Paterson's proposed $1.3 billion cuts to health and education.

Senate Finance Committee Chairman Carl Kruger says while "there is no question that we have a budget deficit that needs closing as quickly as possible," it must be done in a "fiscally prudent manner."

With Celeste Katz

klovett@nydailynews.com

Read more: http://www.nydailynews.com/news/2009/11 ... z0WfhTN4Jz
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NOT ONE MENTION OF THE COSTS OF THE SANCTUARY POLICIES!

Just finished posting to article:

They could save millions if not billions by ending the Sanctuary Policies of both the city and state. Just because the MSM and government refuse to discuss the overwhelming costs of Sanctuary doesn't mean that "We the People" are unaware of it.

NYC is a Sanctuary city. They could have avoided this problem if they simply enforced our immigration laws.

Added another post:

If you are sick of paying the tab for Illegal Aliens come to the "No Amnesty Tea Party" (organized by alipac.us) this Saturday, 11/14, 12 till 2 at City Hall Park. Let your voice be heard!

Wait until the health care reform bill throws millions more onto Medicaid - at the expense of state governments.

Originally Posted by ReggieMay

Wait until the health care reform bill throws millions more onto Medicaid - at the expense of state governments.

3-2-4 Can you make up a sequential number (and commit it to memory) that follows that simple math rule? If you can you'll qualify for any social service that the state of NY or NYC offers. The real insult is that if you are obviously an American citizen you will be vetted so thoroughly you will feel as if you had a rectal examine.