State crisis: no more jobs, cut spending

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August 4, 2008

By KIM SMITH DEDAM The Press Republican Mon Aug 04, 2008, 12:00 AM EDT

LAKE PLACID -- Gov. David Paterson's mandate to reduce state spending an additional 7 percent sent state agencies in this region back to the budget table.

Earlier last week, Paterson sat stoically in the capitol's Red Room and delivered a somber message about the bleak fiscal condition of state coffers.

Paterson proposed cuts totaling $1.23 billion from the current budget to offset what he termed a "mammoth" decline in revenues.

It is a fraction of the $26.2 billion forecast in budget deficits looming over the next three years.

"We are now officially saying New York is in a recession," Budget Director Laura Anglin said, noting recessions in the state historically last 25 months.

Regional state agencies are looking for ways to comply.

APA

At the Adirondack Park Agency, with a $6.2 million total budget, it means things will be tight.

"Clearly the state has some serious financial concerns, and we all need to pitch in," Chairman Curt Stiles said in a phone interview.

"The governor is trying to head this off earlier rather than later."

APA has already begun looking for ways to reduce spending further, having met the 3.35-percent cut earlier this summer.

It is the smallest state agency.

"We have no specific game plan," Stiles said, "though we're confident we can do our share. It is tougher for a smaller agency than a larger one; the skin gets stretched a lot tighter."

PRISON SYSTEM

The Department of Correctional Services and the State Police are two agencies that still have not received approval for the 3.35-percent reduction plans filed by July 1.

DOCS had looked to close four prison facilities as part of spending cuts for next year, including Camp Gabriels. But the closures were spared in the final week of state budget negotiations.

DOCS spokesman Erik Kriss said anything that's going on right now with their budget process is internal.

"It's coming up with ideas."

He said it is "really way too early to talk about" closing prisons.

To meet the 3.35-percent reduction, DOCS has presented a plan to trim $82 million from its $3 billion budget, which includes more than $500 million in federal funds and other revenues.

ORDA

In Lake Placid, Olympic Regional Development Authority spokeswoman Stephanie Ryan said they are working with the state to find ways to trim spending.

"We're currently working with the Division of Budget to assist with the governor's new plan."

ORDA already reduced total operational spending from $8.6 million to $8.3 million.

"We have nothing specific yet," Ryan said. "We're working to come up with some ideas."

Patterson said the 7-percent cut in agency funding, on top of a 3.35-percent cut in the spring, shouldn't impair services at parks, for State Police, for highway maintenance or support for schools and hospitals.

He ordered an immediate hard hiring freeze, which means that only essential jobs will be filled.

Cuts proposed include some 900 state jobs.

The state workforce is now expected to total 200,251 at the close of 2008-09, an increase of 497 jobs over this year, according to Division of the Budget figures.

The enacted budget originally assumed an increase of 1,416 jobs.

"This nearly two-third cut in the increase reflects the impact of the 3.35-percent across-the-board agency spending reduction, as well as Governor Paterson's directive to limit hiring to absolutely essential positions," the Division of Budget said in a statement.

No indications yet whether the additional 7-percent reduction will take jobs.

Paterson has called the Legislature back to Albany for an emergency economic session on Aug. 19 to enact the first round of $600 million in cuts.