State Headed in to Economic Downturn
Friday, May 02, 2008
New York, NY —
Budget analysts for Governor Paterson say New York is entering a recession which should continue into early 2009, and it could be a longer and deeper downturn than any national recession.
REPORTER: State Budget Director Laura Anglin says the recession could be “severe” but short.
ANGLIN: First look towards spending into how we can run the state more efficiently. Because unless you do recurrent spending reduction and restructure the way we run government these gaps will continue to look like this going forward.
REPORTER: Anglin says the rate of increase in state spending, at over 10 percent, is “unsustainable”.
She says the state has seen a $1.5 billion decline in revenues because capital gains profits are lower and Wall Street bonuses are down.