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Things are tough all over.

   Breaking on The Buffalo News Web site today:
- Deficit grows to $3 billion as Paterson asks for ideas - Tom Precious/The Buffalo News
   ALBANY -- Fiscal officials in the Paterson administration and Legislature believe the state's deficit is at least $3 billion -- $900 million more than estimated in July.Paterson108
   In a letter today to his negotiation counterparts in the Legislature, Robert Megna, the governor's budget director, said the Paterson administration needs the help of lawmakers to close the red ink.
   The request came a couple days after Paterson ordered $500 million worth of savings in state agencies -- which is about as much as he can do on his own, officials say, without approval from the Legislature.
   Hours later, Paterson rejected -- before it was even made public -- a five-year capital program for roads and bridges work around the state, saying the state's precarious fiscal condition will imperil the projects
.

   Elsewhere:
- State's budget faces $415 million shortfall - The Des Moines (Iowa) Register
   State officials must ax $415 million in state spending over the next nine months, the most severe midyear cut in more than 40 years.
   It will mean trims and elimination of some government services, and some state employees will face layoffs.
   A projected nose dive in tax collections prompted Iowa Gov. Chet Culver on Wednesday to vow to cut at least 8.4 percent from the current budget, if not more.

- Heineman calls special session of Legislature to cut budget - The Lincoln (Neb.) Journal-Star
   The Legislature will meet in special session, possibly beginning Nov. 4, to deal with declining state tax receipts and revise the state budget, Gov. Dave Heineman announced Wednesday....
   General fund tax receipts through Sept. 30, the end of the first quarter of the two-year budget, are below projections for the quarter by $56.8 million, Heineman said. Gross general fund receipts for the month were $358 million, 9 percent below the forecast of $393 million.

- House approves state budget, accompanying tax bill - Pittsburgh (Pa.) Post-Gazette
   HARRISBURG -- It looks like 100 may be the General Assembly's lucky number, as legislators near the end of arduous work on a long-overdue state budget.
   In a 107-93 vote tonight, the state House approved a state spending plan along with a tax code bill, which includes $1.7 billion in new revenue to fund it...
   The revenue bill raises the cigarette tax by 25 cents per pack, delays the phaseout of a tax on business assets, authorizes leasing of more state forest land for natural gas drilling, depletes the state's "rainy day" emergency fund and starts a tax amnesty program aimed at getting scofflaws to pay up.
   The new taxes, which accompany $2 billion in federal stimulus aid and $25 billion from the sales tax, income tax, corporate taxes and other state revenues, will pay for a fiscal year 2009-10 budget of nearly $27.8 billion. The fiscal year started July 1 -- 99 days ago.

-- George Pyle/The Buffalo News

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Current Affairs | Government | Politics | State government | The Economy
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