Budget cuts for north country

ALBANY — The proposal by Gov. Davis A. Paterson to slash $2.6 billion from the state budget will reach into the north country, although until the Legislature acts it is unclear how far.

Nonetheless, in looking only at the governor's proposal for 50-percent cuts to "new and enhanced 2008-09 executive and legislative programs," direct cuts to programs affecting the north country could be substantial.

"On April 1, 2009, in just 232 days, we will have no other choice but to reduce spending and close a $6.4 billion budget gap," the governor said when announcing the plan Monday. "And if the economy continues to worsen, the spending reductions I have proposed will be necessary to help ensure the current year's budget remains in balance."

In an e-mail statement, state Sen. Darrel J. Aubertine said, "The governor has presented his ideas and called on us to make some hard choices. However, we have to be careful that the cuts we make do not impact vital services. I'm especially concerned about aid to municipalities. While local governments should also find ways to cut spending, we shouldn't do anything that would force them raise property taxes."

Under the governor's plan, allocations to certain area hospitals and health care providers could be cut in half. For example, a $250,000 grant to Canton-Potsdam Hospital, Potsdam, would drop to $125,000, while a $300,000 grant to Alice Hyde Hospital, Malone, would become $150,000. Likewise, North Country Health Care Providers LLC would see its $300,000 allocation cut to $150,000.

Economic development funds totaling $300,000 for the Adirondacks and north country would be cut to $150,000, while $200,000 for Upstate Agricultural Economic Development could become $100,000.

Conservation measures also could take a hit. The Adirondack Watershed Institute would receive $125,000 instead of its original $250,000 allocation, while the Trudeau Institute, Saranac Lake, could take an identical cut.

Cuts for New York Agritourism ($375,000), the New York Agricultural Development Corp. ($75,000) and the New York Agricultural Land Trust Fund ($15,000) also might affect north country programs.

"The longer we fail to act, the more painful and limited our choices will be," the governor said. "As I said last month, my goal is to reduce spending in the 2008-09 budget by at least an additional $600 million. I have provided the Legislature with over $1 billion in current-year savings options as we begin a productive dialogue and work together toward the goal of ensuring the state's fiscal integrity."

Other components of the governor's plan include reducing executive and legislative pork barrel spending by 50 percent to $100 million, and cutting the growth in Medicaid spending by $506 million in 2008-09 and by $1.04 billion the following year. If left unchecked, "Medicaid is projected to grow by $1.7 billion in 2009-10, which represents 27 percent of next year's projected budget gap," the governor's press release said.

A proposal to reduce general fund assistance to localities by 6 percent would save $250 million in 2008-09 and $420 million in 2009-2010; reductions would be made against "all unspent local assistance funds, except for school aid, welfare, Medicaid, child welfare, youth detention and special education."

WWNY-TV reported Tuesday that local officials believe Watertown could lose $300,000 and Ogdensburg $100,000 in state aid.

Both houses of the Legislature still must sign off on portions, or all, of the governor's plan. Gov. Paterson has called the Legislature back to Albany for a "special economic session" Tuesday.