Archive for January 13, 2008

Spitzer in Wonderland: The 2008 State of the State Address – By George J. Marlin

January 13, 2008

New York State is on the edge of an economic abyss.  Citibank, which will write-off about $18 billion, has announced it will lay off over 30,000 employees – most of whom work in New York.  Merrill Lynch, anticipating losses to top $15 billion, is turning to China and the Middle East to raise the capital needed to survive.  In 2007, over 40,000 people in the securities industry were fired, bonus payouts were significantly reduced and more of the same is expected in 2008.

With twenty percent of the state’s tax revenues coming from Wall Street-related enterprises one would think this spells big trouble for New York.  But these economic woes did not appear to faze Governor Spitzer when he delivered his State of the State Address last week.

Instead of announcing “the days of wine and roses” are over; instead of declaring a fiscal state of emergency; instead of calling for across the board spending cuts and a hiring freeze; Spitzer proposed increases in state spending. (more…)