Embattled New York Governor David Paterson told the state’s legislature yesterday that the the state will collapse before Christmas is the government does not take action to curb exhorbitant spending.
The governor says $3.2 billion in cuts must be enacted now — or else. The cuts range from $500 million in agency spending to over $1 billion in already committed in aid to school districts and hospitals.
But an upcoming election year and a narrow Democratic majority could threaten to derail any cuts.
Senate Democrats, with their tenuous 32-30 hold on the upper house, are terrified to make school and hospital cuts because, they said, the cuts could mean increases in local property taxes.
Republicans in the Assembly blamed the looming bankruptcy on the majority’s failure to cut spending last year.
“Last year, in the midst of this financial crisis, the Senate and the Assembly together with the governor decided to raise spending by $12 billion,” added Sen. Andrew Lanza, R-Staten Island.
The House is now in a special session, on the governor’s orders, aimed specifically at closing the budget gaps (and approving gay marriage). Further updates will be provided as they come in.
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[...] with the doomsday scenario of running out of money before Christmas, assemblyman in New York got together and produced–nothing that would reduce the [...]