January 25, 2010
CONTACT: Matt Anderson

Statement by NYS Budget Director Robert L. Megna Regarding Impact of 2010-11 Executive Budget on NYC

“On January 19, Governor Paterson proposed a series of necessary spending cuts in his Executive Budget to close a $7.4 billion deficit. Many non-partisan analysts, editorial boards, and business leaders have praised these measures as critical to putting New York on the road to economic and fiscal recovery. However, as could be expected, virtually every advocacy group and region of the state, including New York City, have individually claimed that they would be disproportionately impacted by these tough choices. The truth of the matter is that Governor Paterson proposed across-the-board reductions to every single area of the budget and every single region of the state, which were targeted in a fair, equitable, and progressive manner.

“Additionally, we believe that the local fiscal impact figures that New York City is citing regarding Governor Paterson's 2010-11 Executive Budget are inflated through the use of selective accounting. The Division of the Budget has produced a balanced and comprehensive analysis of the true impact of the Executive Budget on New York City and all other municipalities.

“During his time in office, Governor Paterson has worked hard to enact a number of critical reforms that will deliver important long-term benefits to New York City. These include pension reform for New York City teachers, the reauthorization of mayoral control of New York City schools, and the MTA rescue package, among others. The Executive Budget builds on those efforts by continuing to provide nearly $1 billion in state support for local Medicaid expenses, and offering new revenue and financing flexibility for New York City. It also reforms or eliminates more than 100 local mandates, which will benefit municipalities in every corner of the state.

“New York is facing an unprecedented fiscal crisis, which will require spending cuts and greater efficiencies at every level of government. Governor Paterson looks forward to working cooperatively with Mayor Bloomberg on fiscal issues, as well as their other shared priorities.”