Paterson pitches $5B deficit reduction plan
(AP) - Gov. David Paterson is proposing a $5billion plan to reduce New York's deepening deficits withacross-the-board cuts over two years.
Paterson wants a state spending cap, a cut up to 4.5 percent inthis year's remaining school aid and a pension plan for new stateworkers that's less costly than benefits for current and pastemployees.
The Democrat says Thursday the state would save $9.3 billionover five years under his plan.
He isn't calling for any tax increases.
The proposal now goes to the Legislature, which would have toapprove any cuts to education, health care, public safety and otherpolitically sensitive areas.
Paterson and lawmakers agreed on a $131.8 billion budget inApril that included more than $4 billion in tax increases andrelied on temporary federal stimulus funds.
For Gov. Paterson's press conference announcing deficit reduction plan, go to your digital cable box and select iO Extra on Ch. 612.