The Senate Republicans, who are in the minority in that house by just one seat, rejected both Governor Paterson's dozens of new taxes and fees to raise revenues and a plan circulating in the legislature to raise taxes on wealthy. 'You can't tax your way out of this situation,' says Senate Republican leader Dean Skelos.
Nevertheless, the Senate plan does include some revenue raisers, like enforcing the collection of a tax on cigarettes and other items sold on Indian lands. Other savings would be gained from consolidating state agencies, selling state properties, and raiding some funds. Democrats in the Senate and Assembly will have their alternative budget plans ready in few days.