Albany - Assemblyman Fred Thiele (I-Sag Harbor) announced the State Assembly passage of a deficit reduction measure that will decrease New York State's budget deficit by $2.7 billion, allowing it to manage its cash flow for the remainder of the fiscal year.

"This past April, I voted against every 2009-2010 Budget bill because it increased state spending and taxed New Yorkers too much," said Thiele. "It was not a balanced budget. If anything, it was way out of balance. As a result, New York State realized this increased spending had a detrimental effect on state finances which forced the Legislature to take the steps we took early this morning [December 2]. I was a firm believer that the State should have cut spending back in April in order to avoid mid-year cuts. Unfortunately, legislative leaders failed to act then. This deficit reduction package is a good first step in addressing New York's financial woes and developing a more sensible approach to state spending."

According to Thiele, state property taxpayers were protected under the deficit reduction package since mid-year school aid cuts were avoided however, schools are forewarned that they will see $391 million less in federal stimulus aid next year and should begin planning their budgets appropriately.

The deficit reduction package measure will save the state $2.7 billion and includes some of the following savings:

 • $637 million in agency reductions, which includes 12.5 percent cut to legislative member initiatives and an 11 percent cut in the legislative budget.

 • $431 million in agency reductions - an 11 percent reduction in each state agency's non-personnel services budget.

 • $391 million in federal stimulus to education that was supposed to be used in the 2010-1011 fiscal year.

 • $250 million collected under a new tax amnesty program.

 • $150 million in more aggressive Medicaid fraud recovery targets.

 • $49 million in workers' compensation surplus recaptures.

Further, the budget reduction legislation protects aid to college students by rejecting the Governor's proposed $26.2 million cut to the Tuition Assistance Program (TAP). Also, the Legislature was able to mitigate the Executive proposed 12.5 percent cut to SUNY and CUNY.