New York Gov. David Paterson yesterday ordered state agencies to cut $500 million from current-year spending, an 11% across the board reduction. The action is the first concrete move to cut the $2.1 billion gap that opened up in the state’s $131.9 fiscal 2010 budget primarily due to lower than expected personal income tax collections.
“While agencies have already taken significant action to reduce spending since I took office, further cuts are necessary given the state’s persistent fiscal difficulties,” Paterson said in a press release. “These agency spending reductions, however, only represent a first step. I look forward to working cooperatively with the Legislature to enact additional savings and close our current-year deficit.”