By BRENDAN SCOTT and FREDRIC U. DICKER Post Correspondents
Last updated: 5:34 am
August 20, 2008
Posted: 3:52 am
August 20, 2008
ALBANY - The State Assembly early today passed a measure to cut the current budget by more than $400 million to stave off ballooning deficits.
"It's going to the floor. It should be enacted," Majority Leader Ronald Canestrari (D-Albany) said.
The Senate approved the deal which calls for a total of about $1.7 billion in cost trimming over the next two fiscal years.
"The winds of change have hit Albany," Gov. Paterson said.
The savings come on top of $630 million in cuts the governor unilaterally ordered to close a gap in the state's $121 billion budget.
Even with the cuts, the budget represents a 4.5 percent increase over last year's $116 billion.
Paterson, who was catapulted into office in March by Gov. Eliot Spitzer's resignation, has staked his reputation on his ability to slow spending growth and close a projected $6.4 billion deficit next year.
But his call for $600 million more in savings had encountered stiff resistance from special-interest groups and their allies in the Legislature.
The compromise breakthrough came when Paterson dropped demands for major cuts to aid for local government and Medicaid.
Instead, Assembly Speaker Sheldon Silver (D-Manhattan) and Senate Majority Leader Dean Skelos (R-LI) seemed poised to accept other cuts across the entire budget.
"Potentially, what we're going to be doing today will translate into a billion dollars or more off of next year's deficit," Skelos said.
Lawmakers agreed to save $80 million by slashing 6 percent from grant programs meant to do everything from prevent breast cancer to buy bulletproof vests for cops.
CUNY would lose about $50 million. Another $50 million would be slashed from member item grants - or pork - although legislators said that largely involves money not yet promised.
The Assembly agreed to save another $140 million in part by reducing extra aid hospitals and nursing homes get for inflation.
Spared would be the tuition-assistance program, from which Paterson wanted to cut $30 million, and aid to local governments like New York City, which he wanted to reduce by $49 million.
With AP
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