New York, NY —
Governor Paterson and legislative leaders formally unveiled their spending plan for the fiscal year that begins on Wednesday. The $131.8 billion budget relies on federal stimulus money, a slew of new taxes, including ones on the wealthy, and slower health care growth to bridge a $17.7 billion deficit. Despite a time of economic crisis, the overall plan boosts spending from last year by 8.7 percent. Paterson says that figure isn't accurate.
PATERSON: The stimulus money is a false economy. It was designated in a sense that it had to be appropriated. But the state spending is actually flat.
However, the New York Times reports that direct state spending, excluding federal funds, would rise by 3.3 billion dollars,higher than the rate of inflation.