As this cycle of the American electoral farce closes, a colleague writes;
Governor David Patterson appeared to taking steps toward bringing a little bit of fiscal sanity to New York State. Recognizing that the meltdown of the financial markets, combined with troubles in the housing market, employment, and all other aspects of the economy, he has emphasized a need for some belt tightening budget cuts in state agencies and plans to have the state legislature take action to assist in this effort during a special session later in November.
Commendable first steps, governor, but likely to fail as a result of your own missteps. Your call this past week along with that of Governor Jon Corzine of New Jersey for federal assistance will serve as an incentive for the legislature to do ---- nothing.
Like Henry Paulson who effectively brought the slow moving credit markets to a standstill when he issued his call for a bank bailout, your attempt to cut the budget will be frozen until those in control of the Legislature see how much of a rescue package they can milk from the federal government. I don't how many states are in as bad a situation as is New York, you can bet that most if not all fifty will be looking to sell their needs to be as great if not greater than New York's.
What started out as a rescue of the housing and credit markets in early September, by late September became a bailout, and is now a raid by on the Treasury and future generations by the banking and insurance industries followed by auto, steel and many others. And now you have added your very influential voice to added state and local governments to the ranks of the raiders.
What you should have been urging Congress to resist the calls of all state and local governments to additional emergency assistance. I know some states will be and have been hit harder than others by the meltdown in the economy, but your appeal for help can only encourage exaggeration in all entreaties. You should have advised Congress that you intended to bring the fiscal affairs of New York State under control, and made the point that you would oppose any attempt by other states to have New Yorkers pick up the tab for any other state's failure to do so.
You know that might just cause everyone to behave just a little more responsibly.
My wistful response in the next post.
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