ALBANY — New York Gov. David Paterson plans to meet with legislative leaders next week in a public session to deal with losses of tax revenue and jobs from Wall Street’s meltdown.
The public leaders’ meeting Oct. 3 in Manhattan will be days after the administration receives the second quarter fiscal report that is expected to show steep declines in revenues from a string of failures in the financial sector. Wall Street revenues — business taxes and income taxes — account for about a fifth of state revenues.
The meeting doesn’t mean the Legislature would return to act before Nov. 4, when every seat is up for election.
Such sessions while lawmakers are busy campaigning are rare, although the Legislature frequently returns to session in December. The regular session runs from January to June.
“Anything is possible,” said John McArdle, spokesman for Senate Majority Leader Dean Skelos, a Long Island Republican. “I’m sure that will be a topic of discussion.”
Assembly Speaker Sheldon Silver, a Manhattan Democrat, will also attend the meeting.
“The speaker has said he’s prepared to return to session at any time if there is a need to do so,” said Silver spokesman Dan Weiller.
“We have already taken extraordinary action to contain state spending, but the events that unfolded in our state and nation over the last two weeks have created an urgent need for a reassessment of the current year’s budget and the planning for next year’s,” Paterson said.
“Now is the time for us to agree on a plan of action to be implemented before year’s end,” Paterson said.
Earlier this year, the Legislature and Paterson agreed to cut $427 million from the $120 billion budget, but Paterson has said Wall Street’s losses may have already wiped out that savings made to balance the budget. A deficit of more than $5 billion is forecast for the fiscal year beginning April 1.
Earlier Thursday, Paterson said the proposed $700 billion bailout will inevitably need to grow and a full recovery from the ongoing crisis in financial markets could take 18 months to two years to play out.
Paterson also warned Thursday that federal policies and practices must change to avert future disaster. He blamed the last two administrations in Washington for failing to appropriately regulate banking and the housing market since the 1990s.
“I think that, initially, the $700 billion - which I think in the end will be $1 trillion - will help restore confidence,” Paterson told CNBC’s “Squawk Box.”
The National Conference of State Legislatures also believes a recovery in the states won’t be fully felt until the 2010 budgets, even if the bailout is approved.
“It’s not a pretty picture,” said Michael Bird, a federal affairs staffer for NCSL.
On Thursday, key lawmakers in Washington agreed on a multibillion-dollar bailout plan for Wall Street aimed at staving off a national economic catastrophe.
AP-ES-09-25-08 1812EDT
The meeting doesn’t mean the Legislature would return to act before Nov. 4, when every seat is up for election.
Such sessions while lawmakers are busy campaigning are rare, although the Legislature frequently returns to session in December. The regular session runs from January to June.
“Anything is possible,” said John McArdle, spokesman for Senate Majority Leader Dean Skelos, a Long Island Republican. “I’m sure that will be a topic of discussion.”
Assembly Speaker Sheldon Silver, a Manhattan Democrat, will also attend the meeting.
“The speaker has said he’s prepared to return to session at any time if there is a need to do so,” said Silver spokesman Dan Weiller.
“We have already taken extraordinary action to contain state spending, but the events that unfolded in our state and nation over the last two weeks have created an urgent need for a reassessment of the current year’s budget and the planning for next year’s,” Paterson said.
“Now is the time for us to agree on a plan of action to be implemented before year’s end,” Paterson said.
Earlier this year, the Legislature and Paterson agreed to cut $427 million from the $120 billion budget, but Paterson has said Wall Street’s losses may have already wiped out that savings made to balance the budget. A deficit of more than $5 billion is forecast for the fiscal year beginning April 1.
Earlier Thursday, Paterson said the proposed $700 billion bailout will inevitably need to grow and a full recovery from the ongoing crisis in financial markets could take 18 months to two years to play out.
Paterson also warned Thursday that federal policies and practices must change to avert future disaster. He blamed the last two administrations in Washington for failing to appropriately regulate banking and the housing market since the 1990s.
“I think that, initially, the $700 billion - which I think in the end will be $1 trillion - will help restore confidence,” Paterson told CNBC’s “Squawk Box.”
The National Conference of State Legislatures also believes a recovery in the states won’t be fully felt until the 2010 budgets, even if the bailout is approved.
“It’s not a pretty picture,” said Michael Bird, a federal affairs staffer for NCSL.
On Thursday, key lawmakers in Washington agreed on a multibillion-dollar bailout plan for Wall Street aimed at staving off a national economic catastrophe.
AP-ES-09-25-08 1812EDT
Citizen
Hot Jobs
New! Off the Menu
The Citizens' Say
Post your comment - click hereThere are No comments posted.