"We would have to lay off workers sooner than our plan of Jan. 1," Paterson warns.
Washington, D.C. -- Gov. David Paterson warned Wednesday that New Yorkers could face “unimaginable pain” from additional budget cuts if Congress fails to approve promised Medicaid assistance to the states.
Paterson joined a bipartisan group of governors in Washington, D.C., to lobby for the stalled aid, of which New York is due to receive $1 billion this fiscal year.
Speaking in stark terms before meeting with New York’s congressional delegation, Paterson said without the aid the state will be left with a $1.3 billion deficit — forcing him to put “everything on the table” for additional state budget cuts.
He said this time the cutbacks would strike deep into the social safety net, forcing severe spending reductions and the elimination of programs that could make the nation’s economic troubles “look like a depression, not a recession.”
“The reality is that in the 2½ years that I have been governor of New York, we have cut $42.3 billion dollars from our budget,” Paterson said. “We have cut more in that time than the seven largest deficits the state ever had — combined.”
Paterson was joined by Pennsylvania Gov. Ed Rendell and governors from Michigan, Maryland, Kansas and other states severely affected by the lack of Medicaid assistance. The governors want a six-month extension of additional federal Medicaid assistance that would send about $24 billion to the states. Gov. Jennifer Granholm of Michigan said at least 29 states included the money in their budgets for the current fiscal year.
But legislation authorizing the money stalled in Congress as deficit spending became an increasingly contentious issue this spring.
Paterson said this is no longer an issue about deficit spending. He said states have already cut their budgets “to the bone,” and anything more could have drastic consequences. “It has broken our hearts to make these cuts,” Paterson said, speaking with a group of governors led by Rendell of Pennsylvania.
“I have actually vetoed legislation that would have appropriated resources that was introduced by me when I was in the Legislature,” he said. “I’m not suffering from multiple personality (disorder). The times have changed.”
Paterson said he is still making difficult cuts, even as the state Legislature refuses to make contingency plans for the lack of Medicaid assistance. “I am in the process of vetoing 6,900 programs to keep our balanced budget,” he said. “I hope you hear me Washington — 6,900 programs. If I do one a minute and stamp the veto, it will take five straight days if I don’t stop.”
After his meeting with the state’s congressional delegation, Paterson spoke with Rep. Dan Maffei, D-DeWitt, who has vowed to fight for the money. Maffei asked for and received a promise from the governor that if the federal assistance is approved, the state would immediately direct money to unpaid state contractors whose bills have been delayed by the state’s fiscal problems.
Paterson declined to offer specific examples of what might be cut if the aid is not approved. “We would have to lay off workers sooner than our plan of Jan. 1, and we would probably have to have something like a 1 percent cut to all services across the board,” he said.
U.S. Sen. Charles Schumer, D-N.Y., promised he will do everything he can to help the state. “To lay off teachers, firefighters and cops at the same time we’re trying to create jobs in the private sector is robbing Peter to pay Paul and makes no sense,” Schumer said in a statement after meeting with Paterson.
He added, “Relief for New York will help keep property taxes from increasing, prevent job losses and benefit all New Yorkers.”
Contact Mark Weiner at mweiner@syracuse.com or 571-970-3751.