Paterson orders zero-growth budgets from state agencies

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ALBANY — Gov. David Paterson is telling state agencies to draft zero-growth budgets to fend off a $5.4 billion deficit projected for the coming fiscal year.

A no-growth budget would be rare in New York, where state spending increases have routinely doubled the rate of inflation in recent years.

Agencies are beginning to compile their budget requests now for the 2009-10 fiscal year that begins in April. Paterson will propose his budget in January. The Legislature’s deadline to act on the budget is April 1.

Spending in the current $122 billion budget has been cut to combat deficits several times since Paterson took office March 17. The Democrat has blamed the deficits on years of overspending and declining tax revenue because of a national recession.

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