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Paterson Plans to Deal with Deficits Sooner Rather Than Later

By Mark Scott

Buffalo, NY – Governor David Paterson says the state needs to start dealing now with future budget deficits.

The Governor held a news conference in Albany Wednesday to release details of what he's calling PEG, which stands for Program to Eliminate the Gap. Paterson says it will allow him to call for immediate spending reductions by state agencies at any point of the fiscal year.

The day after he took office in March, Paterson immediately ordered state agencies to trim their spending by 3.35 percent. They had until May 16th to submit their recommendations.

At Wednesday's news conference, three commissioners outlined for reporters how they responded to Paterson's call. Tax Commissioner Robert Megna says even seemingly inconsequential cuts can make a difference.

Paterson said his office is in the process of reviewing plans submitted by 75 agencies. Once the review process is complete, the reports are expected to be made available online.

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