N.Y. governor, legislature agree on state budget

Any material reduction in consumption as a direct result of spending cuts from the States will be met with additional liquidity. Have not doubt about it. Either direct or indirect injections, consumption cannot falter. Consumption, representing over 70% of GDP, drives the U.S. economy. The 2012 election will be all about jobs creation and economic growth with a few side show debates.

"This budget makes tough choices, which is what you sent me to Albany to do," Cuomo said in a statement. "It closes a $10 billion deficit with no new taxes or borrowing, redesigns government to force it to cut waste and inefficiency and finally delivers real results for hard-working families across New York state."

Cuomo outlined a series of spending cuts, including a $170 million budget reduction for the Office of Court Administration as well as 10% reductions in the budgets of the executive branch, and the offices of the Attorney General and the Comptroller. There were also $54 million in other miscellaneous cuts, he said.

"Government had to tighten its belt with the same sense of urgency that working families have been tightening their belts since the economy went into freefall in 2008," said Assembly Speaker Sheldon Silver.

Source: cnn.com