Paterson sets deficit talks with unions

BY The Associated Press

Tuesday, October 7, 2008 9:22 PM EDT

ALBANY — New York Gov. David Paterson said Tuesday he will meet with New York’s powerful union leaders as he pursues drastic cuts in state spending to address the worsening economy and a potential $8 billion budget shortfall next year.
Paterson refused to say if he will discuss layoffs and potential concessions during the private meeting. When Paterson was asked Friday if he would seek to cut jobs or change contracts, he said he would discuss such issues with union leaders before making any public comments. The governor’s office declined to say when the closed door discussions would be held.

“We’re going to talk about the fiscal crisis and how we can work together,” Paterson said.

Paterson has said he opposes increasing taxes and lawmakers should instead find ways to cut spending across every agency.

“We don’t anticipate that there will be a discussion of layoffs,” said Darcy Wells, a spokeswoman for the Public Employees Federation. “Because of the agency cuts across the board, we’re operating on bare bones.”

Wells said the state could save money by using fewer private consultants, noting that state employees are generally less costly, even with health and other benefits factored in.

Stephen Madarasz, a spokesman for the Civil Service Employees Association said the only way the budget gap can be filled fairly is with a tax hike on the wealthy.

“All New Yorkers are going to be paying for those sins (on Wall Street) and they won’t even put on the table making the super rich pay their fair share to address this mess — it’s just a bit hypocritical,” he said.

Madarasz said the $2 billion in tax cuts the governor has called for in this fiscal year won’t “be achieved without real pain for real people.”

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