ALBANY – Gov. Pataki and legislative leaders unexpectedly claimed they were close to a budget agreement last night – despite a massive, newly disclosed $1.3 billion revenue shortfall.
“I think we’ve made real and substantial progress today,” Pataki declared after a two-hour closed-door meeting with the leaders of the Legislature.
Pataki said he was ready to slash the $89 billion budget he proposed in January in order to deal with the shortfall, but he – as well as the legislative leaders – refused to provide details on how that would be done.
Pataki, who faces reelection in November, did say he would seek to “restructure and downsize” state government, but without any layoffs.
Legislative sources said an accord on a new state budget – which was due April 1 – could come as soon as today, if only because lawmakers feared that state revenues will continue to drop in the weeks to come.
The sources said Pataki and lawmakers are considering a wide array of measures to raise more revenue, including a tax amnesty program, an accelerated early-retirement incentive for state workers and a speed-up in the approval of Indian-controlled casino gambling.
An across-the-board cut in state agency spending is also known to be in the works – even as Pataki and the lawmakers press ahead with a plan to hike state aid to local school districts, including New York City’s hard-pressed system.
Legislative leaders – who, along with Pataki, are nervously eyeing the November election – planned to outline a series of “creative” budget options to their fellow lawmakers at closed-door sessions today.
“We’re being as creative and imaginative as we can be and it is difficult,” said Senate Majority Leader Joseph Bruno (R-Rensselaer).
Assembly Speaker Sheldon Silver (D-Manhattan) agreed that the budget talks were “moving forward” but he was more cautious about how quickly the problem would be resolved.
“We have a lot to cover yet,” said Silver.