We recognize that New York is facing difficult economic times. More than a year ago, I and my Assembly colleagues began warning New Yorkers that our state was entering a period of economic decline. We forecasted the recession, advanced a plan to address the subprime mortgage crisis in January of this year, and in June, we recommended a plan to help homeowners pay their winter heating bills.
This afternoon, we listened closely to the Governor’s call for fiscal austerity. I and my colleagues are monitoring the economy, we continue to consult with our economic advisers, and we are prepared to work with Governor Paterson and with our colleagues in the Senate to make the tough but thoughtful decisions that are necessary.
In every period of economic decline, the call for cuts and caps gives rise to the same, important questions. What programs will be cut? Whose services will be diminished or eliminated?
Our answer is that middle class families and our working poor must not be forced to bear the brunt of such cuts. I and my Assembly colleagues believe that this state must not backpedal on the important progress we have made for the hardworking families of this state.
We must not close the doors of our Universal pre-K classrooms to our four-year-old boys and girls.
We must not abandon our CFE obligation to ensure that a sound, basic education is provided to each and every child in our public schools.
We must not halt the progress our school districts have made in reducing class size.
We must not cut back on the nursing home and home care services that our elderly and our citizens with disabilities depend upon.
After making an historic and long-awaited commitment to affordable housing, we must not abandon that commitment nor break our promise to revitalize our Upstate economy and nurture job growth.
There are tough choices to be made; choices that must reflect our priorities as a state. If it is our intention to ask working families to shoulder the burden of these cuts, we must ensure that our most affluent citizens share that burden. At the same time, we expect Washington to acknowledge New York’s economic hardship and to provide this state with the assistance we deserve and need.
Regarding the Governor’s call for a property tax cap, let me reiterate that we can support such a cap so long as this state honors its commitment to our children’s education. To provide immediate relief to our property taxpayers, we are recommending a fully financed property-tax “circuit breaker.”
The State of New York has faced difficult economic times in the past and we have dealt with them. Now, we are prepared to work with the Governor and with our colleagues in the Senate to address the challenges brought on by the current recession.

ALBANY, NY (07/29/2008; 1808)(readMedia)-- “Governor Paterson’s talk of reducing the state work force to solve New York’s fiscal problems is nothing but a sham. When the governor talks about families who can’t afford to heat their homes, can’t afford to put gas in their cars and can’t afford groceries, he is describing his own workers and their families who will only be hurting more after he takes away their jobs.
“At a time when we need better and bolder solutions, the governor is relying on failed policies from the past. There are better ways to address fiscal challenges than laying off working people in a troubled economy.
“New Yorkers deserve better ideas than this. CSEA is willing to work with Gov. Paterson and other state leaders to come up with solutions to the fiscal challenges we face that will have a real and lasting impact on the future of this state. Responsible, long-term solutions must include creative ways of increasing revenue instead of simply cutting jobs and gutting services.
“We will not stand by for knee jerk political solutions that diminish our quality of life and create more misery.”

New York City Comptroller William C. Thompson, Jr. issued the following statement today regarding Governor David Paterson’s address on the State’s fiscal health:

I applaud Governor Paterson for his leadership in rightfully sounding the alarm and taking action to address the State’s increasing deficit.

Governor Paterson has effectively issued a call to action, urging the public and private sectors to work together to find ways to address the serious fiscal crisis New York is facing. Governor Paterson was also correct in declaring that government needs to follow New Yorkers in learning to do more with less.

In the City, we have prudently planned for tough times, setting aside surpluses and restraining spending now before times get tougher. Nonetheless, the City’s budget will continue to be under pressure for some time, and very difficult choices still lie ahead.

ALBANY, NY (07/29/2008; 1818)(readMedia)-- "By directly confronting New York's emerging fiscal crisis at this time, Governor David Paterson has chosen a course that is bold, prudent, and responsible," said Kenneth Adams, president and CEO of The Business Council of New York State.
"He is correct that our state's fiscal house rests on a crumbling foundation and we must take action to fix it immediately," Adams continued.
"Governor Paterson has implored us all to accept the brutal facts of the New York State economy. He has made it clear that now more than ever we cannot continue to run our state in business-as-usual mode. The old model is broken. And no one can fix it but us.
"Clearly we must cut state spending and live within our means. Just like the 19 million New Yorkers that it represents, our state government in Albany must scale back in these tough times-it must spend less, borrow less and save more.
"The Business Council applauds Governor Paterson for his decisive leadership on this tough issue. On behalf of our more than 3,000 member companies, we stand ready to assist the Governor and our legislative leaders in working together to reduce state spending and create a new fiscal discipline for New York State."

Chris Laing, Republican candidate for State Assembly in the 112th district, issued the following statement in response to Governor Paterson's address to the state:

"Tonight, I watched Governor Paterson lay out his assessment of the state's financial situation. I was pleased with the fact that he clearly stated that Albany has been 'doing less with more' and that we need to reduce spending. I was thrilled to see that he is prepared to reduce the size of the state workforce because our ability to cut taxes depends on us first cutting spending.

"I commend Governor Paterson for having the courage to speak the truth, that our problems begin and end with how much money Albany is spending. It was amazing to see a Democratic Governor from New York City sounding more fiscally conservative than most of the Republicans we have sent to Albany in the past decade.

"Governor Paterson's concerns about the hardships people face this winter between property taxes, home heating costs and groceries are well-founded and demand immediate action.

"I hope to have the opportunity to work with Governor Paterson to take on the special interests and politicians who got us into this mess."

Albany – Karen Scharff, Executive Director of Citizen Action of New York, said tonight in response to the Governor’s call for the Legislature to return on August 29th to address a multi-billion dollar state deficit:

“No one denies the state deficit is real. But we can’t balance the state budget on the backs of our schoolchildren, the sick, and the poor. Even in times of economic downtown, we must protect the core functions of our state government, and that means quality healthcare and quality schools. And a balanced approach to bringing the state budget into balance means tax increases on the wealthiest New Yorkers. Wealthy New Yorkers have benefited most from the strong state and national economy of recent years, while their taxes went down, so now is the time for them to pay their fair share.”

“Yes, we should take the state deficit seriously, but we should respond to the economic downtown by investing in New York’s future, not by taking away the economic supports working families need. Reinstating a tax surcharge on the wealthiest New Yorkers who benefited from the boom and investing in education, health care and real property tax relief will help New York families and stimulate the economy. Budget cuts and political gimmicks like the tax cap will just drive us deeper into crisis.”