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August 11, 2008

Paterson calls for $1 billion more in budget cuts

ALBANY, N.Y. (AP) — Gov. David Paterson is proposing $1 billion in state spending cuts for the Legislature to consider at its special session Aug. 19.

Paterson said he wants $600 million of the cuts this year to address a deficit he said is deepening.

Paterson gave the proposals to Senate and Assembly majority leaders Monday. The Democratic governor already cut more than $600 million from his agencies.

Among Paterson's proposals is cutting $50 million in funding for the City University of New York. He's already trimmed a similar amount in the State University of New York system, which critics said will damage efforts to hire more full-time professors.

The biggest proposed reduction would be $550 million in Medicaid funding to hospitals and health care providers.

He ruled out tax increases "for the time being," including the Assembly Democrats' call for a higher income tax on those making $1 million or more.

"It has to be a last resort," Paterson said of raising taxes.

The proposal doesn't include reducing state aid school, which was boosted a record $1.8 billion in April to more than $21 billion. Education spending is pushed by the strongest lobbyists in Albany, including the New York State United Teachers union and the state School Boards Association, both of which worked to exclude school funding from any cuts.

Paterson did propose reducing aid to local governments by $250 million, about 6 percent. Counties and municipalities call that funding critical and they argue any cut could increase local property taxes.

Another $132 million would come from postponing some legislative programs approved this year, but he didn't identify them.

Paterson's proposal includes limiting pork barrel spending by legislators and his office to $100 million for specific programs, charities and projects.

He said he wants cuts that will continue into the future to offset years of overspending.

"We have to stop this frenzy of spending and lack of accountability," Paterson said.

Without making the cuts, Paterson said the Legislature will likely be forced to return to Albany in November to address the election year deficit.

"I want to change the culture of how New York and New York state views economics and deficits," Paterson said at a press conference in Long Island. He said that with "just a little bit of sacrifice ... we can get out of this situation and be a beacon for other states."

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