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NY governor to call lawmakers to special budget session

</head> <body> <p>NEW YORK (Reuters) - New York Governor David Paterson is calling lawmakers back for a special session to discuss the budget deficit of more than $3 billion that has opened up in the current fiscal year.</p> <p>Paterson said on Monday he is aiming to hold the session on November 10. The governor will ask the leaders of the Senate and the Assembly to meet on November 9 for a briefing on the measures needed to ensure long-term financial stability.</p> <p>"In this fiscal crisis, we cannot afford to delay action or continue spending at our current rate," Paterson said in a statement.</p> <p>The Democratic governor has already proposed a two-year deficit reduction plan that would have a $3 billion impact in fiscal 2010 and a recurring impact of $2 billion in fiscal 2011.</p> <p>The state is facing a cash crunch in December when it will need about $3.6 billion of cash to pay its bills. State Comptroller Thomas DiNapoli has said the state may have to borrow from its short-term reserve funds to meet cash flow needs.</p> <p>The governor is proposing across-the-board spending cuts at state agencies and reforms to the state pension system.</p> <p>He is further proposing the launch of a tax amnesty program that would forgive penalties and interest rates on long-standing tax liabilities.</p> <p>(Reporting by Ciara Linnane; Editing by Padraic Cassidy)</p> </body> </html> </div><!-- end article-body --> </div><!-- end aticle-body-wrapper --> <aside> <ul class="social-share-btns clearfix"> <li><g:plusone size="medium" href="http://wixx.com/news/articles/2009/oct/26/ny-governor-to-call-lawmakers-to-special-budget-se/"></g:plusone></li> <li><div id="fb-root"></div><script src="http://connect.facebook.net/en_US/all.js#appId=112315878855956&xfbml=1"></script><fb:like href="http://wixx.com/news/articles/2009/oct/26/ny-governor-to-call-lawmakers-to-special-budget-se/" 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