New York governor to announce $2 bln budget cuts

Special Report:Global Financial Crisis

NEW YORK, Nov. 11 (Chinese media) -- New York State Governor David Paterson will

unveil 2 billion dollars in budget cuts Wednesday morning, less than a week

before the State Legislature returns for a special session to address the

state's ballooning deficit.

"This proposal, as well as our executive budget in December, will include

reductions across virtually every area of state spending," a report available on

www.timesunion.com on Tuesday quoted Risa Heller, the governor's communications

director, as saying in a statement.

"Given the magnitude of this crisis, the only way we are going to be able

to get New York's fiscal house in order is through shared sacrifice. Just as

families across the state must adjust to changing financial circumstances, so

must our government and those who rely upon state funding," Heller said.

In recent weeks, Paterson has steadily toughened his stance on what sectors

should be included in the cuts, which must be authorized by the Legislature, the

report said.

Cuts to education and Medicaid, have in a series of statements moved from

being "on the table" to almost inevitable, according to the report.

Similarly, the governor recommends that agencies and their labor unions

should reopen contracts in order to stave off the need for layoffs -- a

suggestion that was rebuffed by labor leaders on Monday.

Three of New York's most powerful public employee unions have reportedly

said that they won't reopen contracts to any concessions despite the state's

fiscal crisis.

"I don't see any local leader wanting to come to the table to give

something up," Richard Iannuzzi, president of New York State United Teachers,

was quoted by a report available on www.nypolitics. com Tuesday.

Paterson has watched his poll numbers rise over the past three months since

he issued his first major statewide address on the financial peril facing New

York due to the slowdown on Wall Street and sluggishness throughout the larger

economy, according to the report.