By WBFO News
Albany, NY – Governor David Paterson is using his executive powers to move $1.6 billion from state agencies to the general fund in order for the state to meet December's financial obligations.
The stop-gap measures, however, do not include education and health-care programs, the state's two biggest expenses.
"I feel that we have to start making the deficit reductions on our own, hoping the Legislature will join us," Paterson said Sunday in a teleconference with reporters. "This is the point where other states went off the cliff. This is where they should have acted and didn't."
Most of Paterson's immediate action involves shifting money from state agencies to the general fund, which must be returned to the agencies within four months under law. He also says he will temporarily use some cash from previously scheduled borrowing for capital projects. The plan includes his already announced cuts of $500 million through 11 percent cuts to state agencies, $150 million in improved Medicaid fraud collections and management efficiencies.
Lawmakers are due back in Albany Monday as they enter their fourth week of trying to agree on a deficit cutting package.
"Senate Democrats agree there are administrative measures the governor should take to provide immediate relief while a sensible solution to the budget gap is negotiated," said Austin Shafran, spokesman for the Democratic majority. He said the Senate will continue to seek a "fiscally prudent deficit reduction plan that protects jobs, prevents tax hikes and saves critical funding for our schools."