ALBANY, N.Y. (AP) — New York Lt. Gov. Richard Ravitch is known for helping engineer historic rescues of governments in crisis. Now he says states in the U.S. are headed toward what he calls a fiscal “cliff.”
That will be this summer, when temporary federal stimulus money spent on education and other programs dries up.
It’s one of the critical issues New York and other states will face in the coming year, long after economists declared the recession over.
Ravitch says Thursday that Gov.-elect Andrew Cuomo faces difficult decisions on spending cuts as deficits from past overspending and borrowing come due.
The Democrat is in his last days as lieutenant governor and has sounded the warning for two years. But his plans for a five-year restructuring of New York’s finances were rejected by Gov. David Paterson, Cuomo, and the Legislature.
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