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.
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.
"In this fiscal crisis, we cannot afford to delay action or continue spending at our current rate," Paterson said in a statement.
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.
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.
The governor is proposing across-the-board spending cuts at state agencies and reforms to the state pension system.
He is further proposing the launch of a tax amnesty program that would forgive penalties and interest rates on long-standing tax liabilities.
(Reporting by Ciara Linnane; Editing by Padraic Cassidy)