Paterson orders $500M cut in state spending


Published: October 6, 2009 - 3:08 pm


(AP) - Gov. David Paterson has ordered a $500 million cut in non-personnel spending by New York state agencies to help deal with a deficit estimated at more than $2.1 billion.


He said the reduction represents about 4 percent of total agency spending and won't come from salaries.


Mr. Paterson cut agency budgets last year to deal with the state's fiscal crisis, saving about $1 billion.


Mr. Paterson can make the cuts in the executive branch without the approval of the Legislature, but deeper cuts in programs will still need legislative support.


He's also encouraging agencies to trim personnel costs through attrition.


Mr. Paterson warns the recession has cut so deeply into tax revenues that the deficit may be $3 billion in the current fiscal year.


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