About that $25 billion stimulus

This morning there’s news of the Albany skull session on divvying-up the state’s many billions of federal stimulus money. There’s concern that since there are no lawmakers in the room, the distribution may not be fair. No further comment on that — given the state of politics and governance in Albany.
The Washington Post’s David Ignatius has a lot more to say about how the politics of passing the federal package is distracting us from the substance of the crisis and the stimulus strategy.
At the state and local level, he writes:

…the impact of the downturn is severe and immediate: States are required to balance their budgets, so they don’t have the Washington option of printing money. They have to raise taxes or cut spending — both of which could make the downturn even worse.

and…

…most states have said they will cut services and payrolls. At least 40 states are planning such cuts, according to the Center on Budget and Policy Priorities. The proposed cuts are scary: At least 28 states are contemplating reductions in public health programs; at least 22 are targeting services for the elderly or disabled.

According to the Posts’s numbers, New York’s budget deficit, as a percentage of the state budget, is third-worst in the country… worse, by the way, than California’s.

Tags: nysbudget