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A recent attempt by New York State Governor David Paterson to furlough state employees has been squashed by a Federal judge after lawsuits were filed against the furloughs. New York State is in the middle of a serious budget crunch and is running the risk of insolvency. Governor Paterson and legislators reluctantly agreed to a one-day furlough on 100,000 state employees. It would only have cost each employee one day’s pay, far less than the amount of the average payday loan.

New York State Governor Paterson ordered furlough to ease budget

The state of New York is currently staring down the barrel of a $ 9 billion budget deficit. This does not weigh the burden entirely on those that would have gone on furlough, but $ 9 billion is not the kind of money most state government can easily dish out. Serious cuts were necessary, and this was what New York State legislature and Gov. David Paterson thought could help ease the burden.

The Judge’s arrival

After the furloughs were announced, several unions filed restraining orders against them. If drastic cuts aren’t made soon, New York will run out of money by summer. A restraining order against Paterson ordering the furlough was issued by U.S. District Court Judge Lawrence Kahn, despite the fact it would have only lasted for one day. He said the furlough would be far more damaging than good. Legislators also opposed the furlough, but grudgingly passed it. Included in the budget cuts would have been a scheduled raise, which union leaders were none too pleased about, as reported by the New York Times.

New York and the billion dollar deficit

New York’s budget crisis is one of the worst in the country. Few states are that far in the red, and austerity measures are opposed at every turn. Obstinate unions unwilling to work with either industry or business heads for the greater good makes it more difficult to cut expenditures, and taxes are hard enough to get raised as it is. When a government runs a deficit, it can cut expenditures, increase revenue, or execute a combination of both.