Since the onset of the global economic crisis last spring, New Yorkers have known that the 2009-10 State Budget negotiations would be among the most difficult in history. After passing the 2008-09 State Budget last April, the State Legislature enacted emergency reductions on two separate occasions, during a special session last August and the adoption of the Deficit Reduction Plan in February. But deteriorating fiscal conditions largely brought on by global economic distress continue to take a heavy toll on our financial future.

This week, Governor Paterson and Legislative Leaders announced that revenues, already decimated due to the collapse on Wall Street, will be $3.2 billion less than projected during the last correction just over one month ago. This increases the 2009-10 deficit to more than $16 billion.

In these unprecedented circumstances, pressure to enact broad programmatic cuts has intensified. In response to the seriousness of the situation, the Governor has proposed layoffs for 8,900 state employees, nearly 5 percent of the total state workforce. This recent announcement comes in addition to other cuts previously recommended in the Executive Budget.

At the same time I remain committed to fighting for the preservation of vital services, particularly those that provide support for our most vulnerable citizens. We must care for the elderly, the ill, and our children even in uncertain times, and balance our sense of urgency with compassion for our neighbors and fellow citizens.

For the duration of this economic crisis, we must also find ways to alleviate hardship and share costs whenever possible. Earlier this month, I sponsored and the Governor signed a bill making federal stimulus subsidies available to individuals laid off from small businesses who otherwise could not afford health care. Loss of health benefits can trigger catastrophic financial consequences for working families, with grave implications for our financial system, and I am pleased that we are able to offer this option.

And as we seek solutions, no one segment of our population must be asked to bear the burden of this crisis, particularly hard-working families who have already endured great hardships. Two weeks ago, the Governor and Legislative Leaders announced the elimination of many of the proposed "fun taxes", such as the sweet beverage tax and digital download tax, after federal stimulus aid was finalized for New York.

Still, we cannot rely on one-shots like federal stimulus dollars or more borrowing to solve our structural budget problems. Looking beyond the present budget challenges, New York should immediately take up the task of rebuilding state government and removing the structural obstacles to long-term financial and economic health. That is why I have proposed and will continue to fight for basic reforms of our health care system, including expanded long-term health care insurance options to reduce pressure on Medicaid, and job creation policies that will provide the foundation for genuine economic growth in the hi-tech and manufacturing sectors.

Without question, controlling state government spending is our most pressing long-term challenge, and there must be a determination on the part of all leaders and lawmakers in Albany to work for a fundamental restructuring of the budget to avoid perennial shortfalls.

I also remain committed to establishing effective long- term job creation policies that will generate genuine economic growth outside the confines of Wall Street, so that state government will never again be as reliant upon, and vulnerable to, cycles of boom and bust within the financial markets.

Only by seizing the opportunity afforded by today's crisis can we bring about a better tomorrow for this generation of New Yorkers, and all those who follow.

Thank you very much to all those of you who have called, written or met with me in the past few weeks and months about ways to address our budget crisis. I can assure we are hard at work in Albany and hope to have a balanced, on-time budget next week that will salvage our vitally important state services in the face of historic fiscal challenges.

About NYS Assemblyman Joseph D. Morelle

Since 1990, Assemblyman Joseph D. Morelle has represented the 132nd Assembly District, which includes portions of the city of Rochester and the Monroe County suburbs of Irondequoit and Brighton. He is Chair of the Assembly Standing Committee on Insurance and also serves on the Rules, Ways & Means, Economic Development and Higher Education committees.