ALBANY — Gov. Paterson told astonished state leaders yesterday that the state’s newly adopted, record-high budget may already be as much as $3 billion in the red.
But that was nothing compared to the shock they’d received moments earlier when the bumbling governor apparently mixed up his fiscal years and suggested this year’s deficit was actually twice as high — an incredible $6 billion.
Assembly Speaker Sheldon Silver (D-Manhattan) turned to Assembly Labor Committee Chairwoman Susan John (D-Rochester) and whispered in amazement, “Six billion?”
Silver then folded his arms and shook his head at least once as the governor continued.
When Paterson was done, he took the podium and said, “I think the governor was talking about next year’s budget.”
He was right.
Paterson had apparently added the just-disclosed $3 billion deficit for the current 2009-2010 fiscal year to the projected $2.5 billion deficit for the 2010-2011 fiscal year and thrown in another half-billion.
Paterson presumably meant to say that would be the total deficit for the fiscal year beginning April 2010 if spending isn’t reduced.
“So we’re looking at closing that $3 billion, and we know that on top of that it is another $2½ billion, so approximately $6 billion of deficit reduction must take place between now and April,” he said, managing to confuse nearly everyone.
Paterson, who appeared with other political leaders at a press conference to announce the extension of unemployment benefits, said he may ask the Legislature to begin cutting spending before it adjourns next month.
That’s when he has threatened to begin laying off 8,600 state workers because of budget problems unrelated to the new deficit.
“We’re going to have to start thinking now about what further cuts would be,” he said.
“It’s a disturbing kind of announcement to make, but it’s actually true.”
Paterson blamed this year’s projected deficit on his reliance on revenue projections that were finalized in February but failed to reflect a further drop that was happening when the budget was passed in early April.
Senate Majority Leader Malcolm Smith (D-Queens) shot distressed looks at an aide when the governor began talking about spending cuts.
Sources later said Paterson hadn’t alerted Smith to that possibility and added that Smith didn’t think a budget-cutting session in June was necessary.
Paterson’s grim assessment came a day after state Comptroller Thomas DiNapoli said state revenues had fallen short by nearly a quarter-billion dollars during April, the first month of the fiscal year.
“This was a poor start to the fiscal year,” said DiNapoli.
Paterson and state lawmakers approved a $132 billion budget in early April that raised taxes by $8 billion and increased spending by 9 percent.
They insisted at the time that it would remain balanced because of the higher taxes and the addition of more than $6 billion in federal stimulus money.