The New York State Legislature was back in Albany on Tuesday, August 19, 2008. The Governor had called the legislature back for a special session to deal with the budget crisis.

The State of New York has a simple problem – we are spending more money that we are taking in. Sound familiar? Of course it does. Most families struggle with the same situation from time to time. That is why you need to have a budget.

The State has a budget – a really big budget, $122.9 billion in fact. The New York State Constitution requires that it be balanced: income equals expenses. A part of the problem is the fact that the budget is approved, before the money is collected. So our State leaders have to estimate the income as well as the expenses. The Governor and his staff looked at the numbers, and saw a problem – a $1.29 billion problem.

The Governor immediately cut approximately $600 million from his Executive Budget, by requiring all State agencies to cut expenses by 7 percent, and stop hiring any additional employees. Then he called on the Legislature to cut another $600 million.

But this is an election year, so politicians are reluctant to cut things like health care, education, or their member items.

As usual in the State Capitol, the Legislature was called back into session, but the real decisions were made by the BIG THREE (the Governor, the Senate Majority Leader, and the Speaker of the Assembly). Finally they agreed on over $400 million in cuts in spending.

It was presented to both Houses of the Legislature as a 237 page bill! It sailed through the appropriate committees, received a “Letter of Necessity” from the Governor, and was passed by both Houses of the Legislature. All this was done in just a couple of days.

I hope that the cuts just the beginning. If not, our State is headed for serious financial trouble.