NY could face shutdown on Monday
Last Update: 7:28 pm |
Albany/Syracuse (AP/WSYR-TV) - The Paterson administration is preparing state agencies for a potential state government shutdown that could begin as early as Monday at midnight.
As of Friday the budget was 71 days late.
A statewide conference call Thursday sought to prepare departments for a shutdown if an emergency spending bill is rejected, said three state officials, speaking on the condition of anonymity because sensitive budget negotiations continue between the governor and legislative leaders.
Friday, the governor's office submitted Governor's Program Bill No. 283 to the legislature. The bill, added to the 11 previous emergency spending bills, would allow the state government to continue to pay its bills through June 20. It only reflects, however, the governor's view of how the budget could be structured and legislators can only vote yes or no.
Rogue Democratic senators Pedro Espada and Ruben Diaz have said they are opposed to short term spending bills that cut funding to critical state services in the long-term. Democrats are asking several Senate Republicans to offset those votes. However the matter is resolved, those who depend on government assistance do not want to see those critical services interrupted.
Some of the services that could be stopped under a shutdown include safety inspections, lottery games, parks and campgrounds, courts and unemployment offices.
The talk of a shutdown prompted state Comptroller Thomas DiNapoli to issue a terse warning as he released his own list of services that would be suspended in a shutdown.
"Stop talking about a government shutdown and get to work and pass a budget," DiNapoli said. "Instead of playing games with extender bills, it's time to get down to the real task at hand: passing a budget that makes the hard choices about spending that need to be made to put New York back on the road to fiscal sanity."
DiNapoli's list of services on the line included:
- Businesses wouldn't get paid for goods and services provided after June 13.
- Social service payments for children and family services including welfare and food stamps would be frozen.
- Schools wouldn't get funding for education of homeless children.
- 153,000 state employees wouldn't get paid on June 23 as scheduled, though bond holders, retirees and taxpayers owed refunds would be paid because that spending requires no legislative authorization.
DeWitt resident Tenesha Murphy said Thursday she believed that a government shutdown would actually have a positive effect on the long-term outlook. "Unfortunately you have to do what you have to do to get people's attention and get things done, so I'm for it," she said.
Others, like Camillus resident Michael Callaghan, have little hope for a positive outcome. "I don't know how much they'll be doing now, it seems like they are already in a state of shutdown," he said.
Julie August's father-in-law is on unemployment after losing his job recently. She is outraged by the state's inability arrive at a budget. "He just lost his job so now what? He doesn't get paid because people can't do their jobs? That's just not fair, someone needs to do something," August said.
Samantha Darling is wondering what she'll do if she loses unemployment while searching for work. "I have tried," she said. "Everybody says, 'try next week, call next week.' Well, I'm the one trying to get a job now!"
Since it seems the budget likely won't be passed before Monday, lawmakers will be forced to vote on an emergency spending bill to keep the government running. Republicans have already said they'll vote down the bill, and two Democrats have said they would too. Together, that is enough votes to keep the emergency spending bill from passing, and would force the shutdown.
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New York Democratic governor seeks help with budget
Governor David Paterson was responding to newspaper reports that two dissident Democrats may trigger a government shutdown by rejecting next week's temporary spending bill.
The governor was appealing to the Republicans for help because his own party, the Democrats, have a razor-thin majority in the state Senate.
"I'm not going to respond to any threats, any thug activity, I'm not going to respond to any kind of blackmail in that respect," Paterson said at a televised meeting with legislative leaders in Albany.
Struggling to close a $9.2 billion deficit, New York missed its April 1 budget deadline. Its government has had to rely on emergency spending bills to keep running.
A shutdown could interrupt an array of state services, from health to transportation.
Paterson, saying the state could not wait any longer to start slicing healthcare spending, included $775 million of reductions in the bill the legislature enacted on Monday, but this strategy has stirred up opposition.
One potential rebel, Senate Democratic Majority Leader Pedro Espada of the Bronx, helped lead last year's failed coup attempt when he entered into a brief alliance with the Republican Senate Minority leader, Dean Skelos, before reversing course.
Espada said: "I will not vote for an extender with any major budget cuts."
Senator Ruben Diaz of the Bronx confirmed by telephone that he decided not to vote for another emergency spending bill on Monday, independent of Espada's decision.
"Either we have a budget or we don't," he said. "I cannot continue with the agony of these cuts every week."
DON'T EVEN THINK ABOUT A SHUTDOWN
Democrats have not accepted all of Paterson's health or education cuts. As an incentive, he offered to include all of the Medicaid cuts Skelos sought in next week's spending bill.
"All I'm asking you to do is help me and not risk the quality of life in the state of New York going into uncharted territory -- even you couldn't divine what would happen if the government were to shut down," Paterson said.
Skelos, who declined at the leaders meeting to say whether he would back Paterson, later told Albany reporters that the governor for the first time this year could count on GOP votes -- provided his next emergency bill included the Republican cuts in human services, Medicaid, and mental health.
"If those cuts are part of the extender next week -- and we believe it will be in the hundreds of millions of dollars we are proposing -- then a number of us in the conference, including me, will be prepared to vote for it," Skelos said.
(Additional reporting by Elizabeth Flood Morrow in Albany)
(Reporting by Joan Gralla; Editing by Kenneth Barry)
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June 11, 2010 8:15 pm US/Eastern
NY Shutdown Would Be 'Height Of Irresponsibility'
Monday Could Be Doomsday If Budget Deal Can't Be Reached
Reporting
Marcia Kramer
ALBANY (CBS) ―
New details emerged Friday about just how many people could be hurt if the New York Legislature shuts down the government. A decision could come as soon as Monday from the Albany "circus."
With the budget standstill continues in New York, officials estimate the shutdown threatened by Gov. David Paterson could be crippling.
"Certainly would be a significant disruption, a very hurtful circumstance for people in the state. It certainly won't help our economy in a time when we are struggling," said Comptroller Thomas DiNapoli.
If a shutdown does happen, 565,000 unemployment recipients would not get their checks because 153,000 state employees – including those that work the unemployment computers – couldn't come to work. They wouldn't be paid either. Welfare, food stamps, and other assistance would be frozen.
Schools would not be paid for for full-day kindergarten, educating homeless children, and bus driver training.
"It needs to be avoided at all costs," said DiNapoli. "It could be the height of irresponsibility if we allow their budget delay to get out of hand to the point where state government has to close down."
All this comes as negotiations on the now 72-day late state budget continued behind the scenes and no one was willing to predict what will happen. Some told CBS 2 progress on the entire budget is being made.
But Paterson still intended to submit an emergency budget bill that sources said will include $150 in cuts to mental hygiene and $175 million in cuts to human services. That's a problem because renegade Democrats said they won't vote for it.
"I refuse to cut any more. I will not cut any more. The governor doesn't have to shut the government, the governor could send a straight, straight extender without cuts," said Sen. Ruben Diaz Sr. (D-Bronx).
Republicans could prevent a shutdown by providing some votes, but Friday they played it close to the vest.
"Hopefully this coming week we will have a budget, but a budget that does not increase taxes or spending," said Sen. Republican leader Dean Skelos.
Sources in Albany tell CBS 2 that progress has been made in the past few days, enough progress that some are suggesting the state borrow the last billion dollars or so instead of making more cuts.
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