New York Times: Gov. David A. Paterson announced on Sunday that he would unilaterally withhold $750 million in scheduled payments to schools and local governments, saying that strong action was necessary to protect New York State from insolvency.
The reductions of 10 to 19 percent in aid will affect schools and social service providers, health insurance payments, cities and counties. Mr. Paterson said the withheld funds were not “a cut” or an “impoundment” — perhaps drawing a legal distinction because only the Legislature is empowered to make permanent budget cuts.
Some lawmakers called the move illegal, but the governor said “we are well within the bounds of legal authority.”
AMNY: With the agency’s [Metropolitan Transit Authority] budget gap possibly hitting a shocking $615 million next year, officials are expected to propose a brutal round of service cuts Monday, including the death of discounted student fares.
“It’s a perfect storm. The whole thing is just unbelievable,” said Andrew Albert, a MTA board member.
The MTA will vote Wednesday on the cuts which will take effect next year if passed. The proposed cuts are even more servere than the “doomsday” plan averted earlier this year by the state bailout.
Over the course of a week, a state aid cut and poor performance from a payroll tax left the MTA with a $343 million budgetary gap.
No comments:
Post a Comment