Paterson Warns of Economic Crisis

Oh, did I forget:

"“Revenues are dropping dramatically,” the governor added. At the start of May, the state budget office projected a cumulative deficit of $21.5 billion over the next three years. Now, just two months later, that estimate has risen to $26.2 billion — “a staggering 22 percent increase in less than 90 days.”"

Why would that be?

Wall Street?

Nah!

In June 2007, he said, the 16 banks that pay the most on their business profits remitted $173 million to the state treasury. “This June, just a month ago, they sent us $5 million — a 97 percent decrease,” he said.

Speaker Sheldon Silver of the State Assembly released a statement on Tuesday evening that acknowledged the economic distress but also made clear that the Assembly would not simply go ahead with a blanket program of cutbacks:

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?

Mr. Silver replied, “Our answer is that middle class families and our working poor must not be forced to bear the brunt of such cuts.” He specifically said that the Assembly would fight for universally available prekindergarten; public school financing; reductions in class size; aid for nursing homes and home-care services for the elderly; and affordable housing.

Mr. Silver concluded:

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.”

Mayor Michael R. Bloomberg, who like Mr. Paterson has warned that New York City faces a tough fiscal situation, said in a statement:

Governor Paterson tonight laid out the extraordinary budget challenges faced by New York State, and all New Yorkers should appreciate that he is moving now – rather than waiting until next year or until after the next election – to tackle the serious problems we face. As we’ve seen in New York City, government budget cuts never come easy but can be done. The Governor demonstrated that he is ready to stand up to the interest groups that will no doubt protest before the Statehouse, just as they took to the steps of City Hall earlier this year. Tonight’s speech was an urgent call to action, and the Governor has my support in developing solutions that work for the people of the City and the State.

Time to become a Republican.

Bloomberg for Governor

Nothing we have ever seen! It's been very clear to me for sometime. Several months ago some accused me of being afraid. My response was "yes, and so should you". Well I guess the Governor, Mayor and those charged with writing the checks are just as afraid for our financial future as I.

Well there is always NYC real estate, just ask the experts. No really, go ahead and buy that condo, in LIC for $700 sq ft. I'm sure your broker knows best.

I'm sure LIC will hold its values when Manhattan prices are at 2007 LIC levels. I would love to hear the rationalization on that one?