New York Now; Caption Master #41

Oh. I would. Never do anything. When I believe that I was hurting my party. But I am convinced I'm not hurting my party right now I'm actually standing up for what my party believes that. New York State Governor David Paterson sits down for an exclusive interview with us next on New York now. Funding for New York now is provided by the New York State Health Insurance Program operating New York State Public employers and employees the employer plan a plan as great as the Empire State. But the actual funding provided by w o any t. SO BORED BORED New York now is Web site comes from Philips Lytle. Hello everyone I'm Matt Ryan from New York now thanks for joining us today show marks a new beginning. We're delighted to welcome the Albany Times Union to the New York now team.

Together we'll be able to better serve the residents of our state by bringing a more comprehensive multimedia news and analysis of state government and public affairs and joining me right now is Casey Seiler the state editor of the Albany Times Union. Welcome aboard. Matt thanks it's great to be here and I know I speak for everybody of the Times Union when I say it's very exciting to be part of New York now. And what better way to join in this new adventure than with an interview with our state's chief executive. Earlier this week we had the chance to sit down with David Paterson at the governor's mansion to discuss what's shaping up as the fall's biggest fight the effort to close the state's looming budget gap. I want to start off by talking about mid-year budget cuts. Your office just put out 500 million in cuts to state agencies which is going to be an 11 percent reduction for this fiscal year. Why did you want to put out these cuts now as opposed to doing them as part of a larger deficit reduction package to be worked out with the legislature. What's important right now is that the legislature join with

us and start finding the ways to to make reductions we have somewhere over 3 billion dollars of deficit that we have got to short circuit. That is the reason within this year since we passed the budget in April and we have fewer options to cut this budget than we had years before. We can't use six hundred million dollars in stimulus money that was intended for federal matching Medicaid money. We can't use 300 million dollars that we use last year in terms of New York Power Authority sweeps. We've got resources we have other fund balances of about four hundred million dollars that we use last year but have been depleted now. So I have been listening to the legislators and leaders and we've had these meetings but we've got to the point we've gotten to the point now we have got to make changes and we're going to have to absorb these reductions. So as not to

restrict our credit rating or. Threaten the financial balance of this state which was seen going on in other states right now. But but why did you want to make the cuts now before the legislature has as worked up for you when the legislature has worked up any kind of package. Are you worried in effect that you're removing a bargaining chip from the table prematurely. No I'm I'm really not as much negotiating as much as I'm trying to set an example. I'm the leader and I'll throw in the first probably the 15 percent of the cuts that will do Have you heard from legislative leaders. Have you gotten any kind of indication that they are planning to return in special session before the end of the year to act on deficit reduction. Well they'll be returning for a special session this year where they're planning on it not because I'm going to call one but they have for the first time as you noticed in leaders meeting a couple weeks ago they actually did come in and talk about ways to curtail the budget now that's a step in the

right direction leaders didn't do that last year. Also the leaders argued when I tried to tell them that we were in an horrific recession and they didn't do that this year. So we've got two new leaders Assemblyman Brian called and State Senator John Sampson. But even the two existing leaders Speaker Sheldon Silver and Dean Skelos the Republican leader of the Senate both seemed very engaged in this process. And I think that that's a good sign. But. This is going to be a very difficult task and I'm going to need them to transmit that same zeal that they brought to the leaders meeting in the actual negotiation because we've got to get this done. Our state's financial status and stability is resting on it. If you find yourself faced with continuing failure for the Senate to put together 32 votes to act on budget cuts would you be willing to put out your own package absent perhaps one or the other of the chambers. Yes I will.

Because they're going to need a menu of cuts to make I'm letting them participate in formulating that menu and if they don't come up with one quickly enough I'll provide it myself. What I've done to this point is try to avoid what I think is an adverse reaction from some special interests that don't seem to care about the fact that the state could have its credit rating downgraded see they get paid just too. Service their clients but the client is the state in New York and the people of New York and the people of New York cannot suffer because some people have resources to try to influence the process and if legislators let them do it we should all recognize that we will be ridiculed as were the legislators in states like California and Michigan in Illinois that didn't address the problem soon enough. We did address the problem last summer. We came back and addressed it again in February out year budget deficits. But our resources are depleted and we must address this in the next couple weeks or we

start to go down a perilous path and I'm not going to let the state do that. You say the next couple of weeks would the deadline be the beginning of November. Well that isn't necessarily a deadline for when it needs to get done. But I would say that if it isn't done the months of January and February could be very gloomy when New York starts to go the wrong way. So there are a lot of states have gone the wrong way because they didn't act soon enough. We appeared to have learned that lesson because we were the first state to address the national recession when we came back in August of 2008 and not only did we cover the deficit but we at the time created a surplus so we were the quickest state in the union to respond. The problem is that we were the hardest hit. State by the by the national recession we are ground zero for the national recession. I mean there's MKC between July of 2008 and Abel 2009. The deficit we had to reduce

quadrupled from a proposed five billion dollars to twenty one billion dollars that's the largest deficit earthquake that has ever hit any state in this country. And somehow we balance the budget on time in spite of it. And close the deficit. You alluded to you alluded to the hammering that you took also in 2008 2009 last fall when you when you put forward the your your package of cuts for the last fiscal year. What can you do to prevent that same kind of thing from happening again essentially from becoming a sequel to the kind of beating that you took. Well I may have to take the beating again but I'm going to close this budget and what happens to me in the process is not nearly as important as what's happening to so many New Yorkers where we now have a 9 percent unemployment rate and we have cities running over 10 percent unemployment rates and even that is an inaccurate statistic because when you look at all the people aren't working and divide that over the population we have a 15 to

17 percent unemployment rate in this state. We are nearing recession like numbers bordering on depression like numbers. So I tried not to give those. A special interest the opportunity to hammer me and try to make everything seem as if it's my fault. The reality is a 20 percent of our resources come from Wall Street. Wall Street went off the cliff on us last year and it's not about how it all happened it's Who's ready to resolve it. And when you're twisting in the wind saying that that we're cutting education when we just actually reducing the increase of education or that we're cutting Medicaid we're just reducing the increase in Medicaid spending. It is just it is inaccurate and it's a deliberate attempt to confuse and distract people from the fact that we're in a recession. Do you think and you've spoken before about the need for a spending cap. Do you think you have the

political capital to move the legislature in the direction of something like that which would be a that's a big ticket item for a lot of for a lot of legislators. Well political capital is the way that governors influence legislators in other words you kind. Fund a lot of programs that people like and then they vote with you we don't have the money to do that. We are in a recession. We are as restricted as the entire government is. But what I would say is that perhaps the persuasion that look you you must hate coming to Albany cutting these budgets all the time. Let's just put in a spending cap downsize our government scale down the resources that we let out for a couple years and then we can get back. To really addressing some of the issues that we've had to curtail during this time. Otherwise New York is going to lag 12 to 20 months behind recessions as it did in the past because we couldn't change our conduct. Homeowners know how to save their homes.

The unemployed know how to start saving money. Even the employed are saving 8 to 9 percent of their salaries when the beginning of the decade. We was saving not even one half a percent of our salaries. They're adjusting Why can't the government adjust. You've spoken forcefully especially in the last couple of weeks about your determination to stand by Democratic Party principles. As a as a believer in those principles and knowing what you face the political difficulties you face going into 2010. Do you ever see a point at which you would perhaps take stock of whether or not you are going to be the best standard bearer for those ideals going into perhaps the next primary season. I mean I would I would never do anything when I believe that I was hurting my party. But I am convince I'm not hurting my party right now I'm actually standing up for what my party believes in. My party doesn't give up Democrats in a New York State Senate we're down seven seats and I became the leader in 2000 in three and by

2008 we were in the majority. Democrats have lived in places like Nassau County where the Republican Democrat ratio was so bad that all the legislators were Republican in the New York State Senate and suddenly there's been a breakthrough and now there are two Democrats and that area. So I think that you don't give up a lot of Democrats and Republicans told me that my appointment of Richard Ravitch was illegal unconstitutional I should be impeached. And now the Court of Appeals says that I was right. And even when the appointment cleared up the problem in the Senate and the Senate returned to work people said will drop the case you already got what you needed. But I was afraid of what would happen if I became incapacitated or was unable to serve. And it's not clear what the line of succession would be so I stuck to the case stuck to my guns and looked what happened. And by the way there's a Democrat whose poll numbers were as low as mine last year.

Who this year as of today is now i head of his Republican opponent in the polls and it's Governor John Corazon of Massachusetts of New Jersey who was left for dead earlier in the year according to political pundits and he has reversed that situation. Even though there's a major scandal in his state going on at the same time but they know that he has nothing to do with it so I think the voters made it very clear that they still need a lot of questions answered from me. But they also were very clear that they should decide who the next governor is going to be. And in opportunities such as the one you're giving me right now Casey I am going to persuade the voters that our management during this crisis has kept the state stable. We have balanced two budgets in an horrendous recession. Never missed a payment to obligate years never missed a payment to schools or local governments and never saw our credit rating downgraded rating downgraded. When the public gets to hear that. And compares it with what's happened

in several of the states I think they may see that it is been a difficult period but it is been a responsible period when it comes to the conduct of the governor of the state of New York. All right back here in the studio with K.C. What struck you the most about the interview with the governor at the mansion. Well we heard a lot of the same tough talk that we've heard over the course of the last couple of weeks from the governor. But when asked to put a deadline on when he expected the legislature to come up with a package of cuts or he would do it he was a little bit less definitive. All right we'll talk more about that at the reporter roundtable in just a few minutes. OK and also joining us right now our New York now teen is Irene Jay Lui state house reporter for the Albany Times Union and blogger extraordinary the Capitol Confidential blog is one of the places to go for Political Junkie state wine. And now here to bring a televised Spin of the popular blog is Irene herself Irene. Hi Matt. Since winning the majority last November Democrats in the state Senate have had a tough time keeping it together. They've endured an early leadership battle a

bruising budget vote and the trauma of a month long coup scandal. Through it all the Senate Democrats have exhibited one central problem they are unable to act as a unified body. Instead they act like the worst parts of high school cliques fighting for power and influence hanging each other's ringleaders and claiming that others just don't understand. We women we have African-Americans Latino's we have up stay down stay. And that is I think that kind of diversity that is worse can create chaos and friction. But also at his best is really the gorges must say that we don't because of the Democrats razor thin 32 seat majority. It only takes one or two legislators to cause chaos and Republicans aim to retake the chamber in 2010 seem to enjoy watching the other side slug it out. There are so many factions there that would like to quite honestly split the other factions throat that I think it's going to be very very difficult

for them to lead in Goldman. Well we have 30 strong right here in this room. Easy for him to say. Schell says conference is all white and includes only two women and represents mostly upstate or suburban districts. Republicans have an easier time holding their conference together especially to deny Democrats votes on tough issues because the factions are the root of the Democrats difficulty in governing. We thought we'd take a moment to map things out. There are four major factions within the Democratic conference the Council of black senators the liberals a group I'll call Cliff and the infamous gang of four. This ten member council black senators headed up by Ruth Hassel Thompson is the largest faction and also the most powerful voting bloc when it comes to choosing a conference leader. Seen most recently by the elevation of Senator John Sampson during the coup. The liberals are a group of seven or so mostly white senators who ideologically tack left in the conference and currently work closely with the council. The most vocal are senators Liz

Krueger and Eric Schneiderman both from Manhattan. This group has typically tried to work within the system to further their agenda with limited success but they've developed indirect influence by advising Sampson on the other side of the spectrum is a group that reporters like to call you know after its leader deputy majority leader Jeff Kline of the Bronx and his most loyal lieutenant Dion Sabina of Staten Island. The seven or so corps members are made up of Democrats more conservative members generally newer senators who represent districts recently held by Republicans. These marginal seats see themselves as more politically imperiled than many of their Democratic colleagues and left out from the decision making. Last but certainly not least we have the gang of four who wrote the book on how the few control the many. Montserrat Ruben díaz and Carl Kruger have exercised the nuclear option more than once over the past year. First by initially withholding their support from Malcolm Smith as majority leader last winter they blew up an MTA deal brokered by

Assembly Speaker Sheldon Silver over the issue of bridge tolls delaying its passage for weeks. And then of course came the crew with a spot in Montserrat playing key roles. It's unclear how much power they will have in the future. A spot to emerge from the crisis with the title of Senate majority leader but little in terms of concrete power. Montserrat is on trial for allegedly assaulting his girlfriend and could be removed from the Senate if convicted of a felony. Other factions have already used the gang's playbook during the year. Members of Queen for example threaten to block the MTA plan over its inclusion of payroll taxes and members of the council's black senators delayed a vote on mayoral control of New York City schools. And now as the state faces a 2.1 billion dollar budget deficit. The Senate has indicated that it doesn't have the 32 votes necessary to pass a deficit reduction plan and several marginal senators have told the Democratic leadership they don't want to cast another unpopular vote this year. For the moment what Senator Spada calls a beautiful mosaic remains in chaos.

Remember you can always read Capitol Confidential on the Times-Union website. Just go to Times-Union dot com. Now let's send it back over to Matt for this week's reporter roundtable. All right thanks Irene and joining us this week for the reporter roundtable is Kyle Hughes of NYS NYS dot com and Karen wit of New York State Public Radio kind of a quiet start to the Newsweek but built up a little bit as a once on. First off on Tuesday the governor announced 11 percent across the board cut and personal services spending for state agencies will start with you first what's that going to mean to your average state worker. Probably very little because it doesn't affect their pay or their benefits but it's going to be cutting other expenses that the agencies have now that it's going to hit the bigger agencies harder the health department which right now is gearing up for H1N1 swine flu. Sunni which is dealing with a huge increase in admissions or applications I should say but they're going to have to do some cutting. The prison system which is you know probably they can handle it of the three big agencies the easiest because they have far fewer inmates. Yeah but it's not going to affect pay or benefits for the employees.

Yeah I think if anybody's going to be affected going to the average college student because Sunni and kuni take a big hit about a third of the money that Paterson wants to cut comes from public colleges and universities which comes just a week after he was in Rochester at the State Business Council meeting saying that Sunni in the future was going to be off the line from further cuts so I guess something happened between last week and this week where he decided that the change really needed needed to cut them and as Kyle said with the enrollment going up they're really going to be squeezed so they'll probably be hurt. But they're trying to take the rest of it out in the so-called paper clips which I signed these days means cell phones printing things like you know I had to pay because I didn't realize they used. So I don't use those I think you may have paper I think it's just a euphemism now but you have it they're going to have to try to squeeze it out any way they can travel expenses and they want more people to take early retirement although the plan that they have the $20000 buyout that's not a lot of money and in a bad economy and I'm going to be interesting to see if they actually do these cuts to things like consultants which we hear a lot about. It's very typical of these

agencies people were tired and then they're brought back in this consultants to do these projects which are meaningless really but we should point out that this this just represents 15 percent of the three billion that needs to be cut and they still even though they've known about this problem since late July are not working on it. One small step for man how has this been received by various agencies I know Phil is not happy about it. Paterson already has low poll numbers how is this been received. Well nobody's ever happy when you say you want to cut spending in New York State so will you. Yeah I don't think so he's very happy but so far they're just saying OK we're just going to you know work with it I mean what can I say really. One of the big news this week Thursday the state Department of Transportation announced their five year capital program soon after it came out. Governor David Paterson put out a press release real soon after the Department Transportation at their release saying it was simply an affordable. And then they brought a response from Senator Martin silat who is the chair of the Transportation Committee.

I think a pause a lot of people you know criticize Paterson but this is Paterson's own transportation department and you presume that Paterson has someone in his office who's in charge of the transportation or they would work together to come up with a plan but apparently that did not happen here. Yeah it does seem very odd These are all these people that he pick they work for him you think that someone would have given them the message hey you can't spend a lot of money this year because it kind of embarrassed that me you know they put out this plant thinking everything was OK and I got slapped down by the governor an opportunity maybe for the governor to just talk tough and say listen I just we can't have this. Yeah that might be it. He seems to be trying it's going to take triangulation he's triangulating against his own commissioner and. We got about a minute and a half left want to talk about something that's happening this weekend is that some of the senators and a few members of the assembly are leaving on a controversial trip to China. What is that all about all they're going for nine days and it's part of us being paid by I think a nation American trade group and some are paying their own way. It's a little bit unclear why the details I'm come out. This of course is a list of the usual outrage that at this time why are they

doing this to take an essentially a junket to China they're going to see the Great Wall of China at the same time we're reading in the paper that all the times you're reporting that they've raised the per Deum on legislators to one hundred seventy one dollars a day on top of their pay and they're losing everything else so it's just again another embarrassing episode I think for the legislature. Yeah I think they probably figured no one would notice they can slip off to China for 10 days but as we said they have this 3 billion dollar deficit the governor's been asking the legislative leaders for ideas on how to close it not that he's wanted to propose his own plan and they haven't. And now they're going to be out of the country while this stuff is happening sell it and get more scrutiny on that and seems like a a worse decision than maybe it seemed initially when they when they first started to do it and certainly not it has been in the works for several months. Certainly not a good PR move with everything going on. Col. Hughes of NYS and we asked that comment Karen tuit of New York State Public Radio thanks for joining us again. And time now for this week's New York now poll question. Do you agree with the governor's statement. New York now that our management during this crisis has kept the state

stable log onto our Web site and slash New York now or drop us an e-mail and why now it w m h t. We love hearing from you. Last week you remember we asked if the governor's race was held today between David Paterson and Rick Lazio. Who would you vote for. And according to our voters Paterson would win handily 74 to 26 percent. A few of our viewers wanted to have their say including William from Yonkers who voted for the governor. He said From what I can determine from Mr. Lozzi Oh he offers no new or differing ideas from those of Governor Paterson except that he isn't Paterson big deal there are about 20 million other New Yorkers who are also not David Paterson from New York City begs to differ. She says a lot of CEOs reform platform is exactly what New York needs. Now if only he can actually make it happen. And finally Mary Lou from Corinth voted for the governor and said Paterson stepped into the job and was faced with the worst economic crisis this state has faced since the Great Depression. I think he has done a good job with budget

cuts and a fantastic job dealing with the dysfunctional state legislature. Thanks again to all those who took the time to write we look forward to hearing from you next week. That's all the time we have for you this week on New York now. Next week Irene Jay Lou will have a look at New York's overburdened family court system including an interview with the state's chief judge Jonathan Lippman. All right we look forward to that and last week we saw the unveiling of former Governor George Pataki. Portrait that will be hung inside the Capitol. But Jackie's portrait stood out because it showed him posing outdoors so as we leave you tonight here's the answer Governor Paterson gave as to what his might look like. Have a great week. Turmoil. For government reform through all kinds of difficulty. As I've done it my entire life. I would like there to be all kinds of turmoil all around me and they could be entitled The picture of the eye of the hurricane. Funding for New York now is provided by the New York State Health Insurance Program offering

New York State Public employers and employees the employer plan a plan as great as the Empire State. Additional funding provided by w o any t support for New York nows website comes from Philips Lytle. I have met Ryan with this week's New York now poll question this week we asked Do you agree with

the governor's statement on New York now that our management during this crisis has kept the state stable. Cast your vote at New York Dolls website WME Dowrick slash New York now we love to hear from you. Or just e-mail us at and why now at w m h t dot org and join us for the results of this week's poll. Next time a New York now.