New York state budget plan causes stir

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New York state budget plan causes stir
« Thread Started on Dec 18, 2008, 4:17am »

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New York state budget plan causes stir
Posted: 10:44 PM ET
NEW YORK (CNN) — A budget plan by Gov. David Paterson that would plug budget shortfalls by slashing spending and raising taxes on items from sugary soft drinks to iTunes downloads is drawing criticism in New York.

In an attempt to close a $15.4 billion budget gap, one of the largest in New York history, Paterson’s $121 billion plan includes major reductions in state programs, and a wide range of tax increases for everyday goods and services.

The proposed budget calls for 137 new or increased taxes, consolidation of more than a half-dozen state agencies and the closing of more than 10 state facilities — including six children, family and youth centers. The plan also includes reductions in school aid by $698 million, $3.5 billion in healthcare cuts and the elimination of 521 state jobs.