By SHERRY HALBROOK
Gov. David Paterson has announced a new Program to Eliminate the Gap (PEG), which aims to bring state operations in at least 3.35 percent under budget on March 31, 2009, to get a running start on the budget deficit of $5 billion he expects to face next year.
Paterson said he expects the state to end its current fiscal year in the black, but he’s building a system of fiscal discipline and transparency to head off future shortfalls.
PEG is not meant to be just an emergency stop-gap or Bandaid, he said. It’s a permanent system for getting state agencies to tighten their belts and keep them tight.
Under PEG, each state agency has submitted a plan to the state Division of Budget (DOB) for cutting current spending by 3.35 percent. DOB is reviewing those plans and posting them, one at a time, on its Web site when they are accepted.
PEG has three components:
• A process to get agencies to spend less and be more efficient throughout the fiscal year;
• An online public report of approved savings plans and quarterly updates on how well each agency is achieving its goals; and
• An oversight board to monitor agency compliance and take corrective actions when necessary.
Through PEG, the governor also can issue spending-reduction targets for individual state agencies to address either current or anticipated shortfalls.
The first quarterly update is expected in October.
Just as DOB is reviewing, monitoring and reporting these spending cuts and policies on its Web site, PEF, too, is reviewing and monitoring those reports and will report on its own Web site how cuts and changes may affect PEF members at those agencies.
“We are looking at every agency plan as it is posted by DOB and we will report any measures to PEF members that are likely to significantly affect them,” said PEF Director of Civil Service Enforcement Tom Cetrino. “Our department will continue to do this as the state posts its updates.”
You can follow PEF’s analysis of your agency’s PEG online at www.pef.org under “Budgets.”
And you can go to the DOB Web site at www.budget.state.ny.us and select “Program to Eliminate the Gap.” Then, select “2008-09 3.35 Percent Agency Spending Reduction Plans” and click on the name of the agency where you work to see it’s entire plan to cut spending.
PEF President Ken Brynien praised Paterson for his efforts to make the state’s fiscal process accountable and transparent.
“Our union has fought hard to make government more transparent and accountable and Gov. Paterson is using his power as chief executive to set a high standard for all of state government to live up to.
“However, PEF must be sure high standards for delivering public services are also maintained and the most cost-effective choices are made,” Brynien added.
