Governor Paterson Calls For Spending Cap

05.05.09 | FL News Team

Governor Paterson wants a state spending cap and plans to introduce legislation that will propose such a cap later this week. Paterson wants to limit spending increases in the state portion of the budget to the inflation rate averaged over the past three years.

The governor says had such a plan been in place earlier this decade, New York would had saved billions of dollars. Paterson says the legislation will change Albany's overspending ways, which he says hurts people across the state.

The governor's proposal would also more than triple the maximum capacity of New York's "rainy day fund" to ten percent of General Fund spending. Paterson says such a move would allow any surpluses accrued due to the spending cap to be used to deal with revenue declines during tough economic times.