Tuesday, December 1, 2009

NY $1.6 billion in emergency action

Unable to get the Legislature to agree on how to address a $3.2 billion deficit, New York Gov. David Paterson said he's taking $1.6 billion worth of temporary, emergency measures to cover the state's December bills.

While he continues to negotiate, he may have lost some leverage. Several lawmakers have sought the executive branch actions to provide more time to wait for revenues to rebound after Jan. 1 and to avoid Paterson's cuts to powerful special interests in public schools and hospitals.