Government Roundup: New York Cuts Back, IT Spending Down, Massachusetts Keeps Income Tax

(MoneyWatch)  New York to restrict spending to essential projects only - New York new Governor, David Paterson, says that due to the downturn in the nation's economy state spending will be restricted in the future. Only essential projects will be funded and state agencies have been told to cut back on spending on office supplies and other "non-essential" services. [Source: New York Daily News]

All levels of government to reduce spending on IT and hardware - US government entities are expected to reduce spending on IT and tech items in the next year according to a survey of IT managers. 37% believed their budgets would be reduced and the focus turn to automation projects which could reduce spending in other areas. [Source: PC World]

Massachusetts effort to repeal state income tax fails - The ballot initiative to repeal the state income tax which provides almost half of the state's funding failed yesterday. In 2002 a little advertised proposition trying to do the same thing almost passed with no advertising. This election a group that was well funded attempted to do the same thing. Opposition was led by local law makers and unions chiefly focusing on the services that would be cut if the revenue stream was disrupted. [Source: The Boston Globe]

Picking winners and losers from the election - The change from a Republican to a Democratic administration with different priorities already has people picking winning and losing companies. The new focus on unions, "green" products and energy, and public works may help companies like Caterpillar and the US auto workers. Airlines and oil companies may face higher taxes and labor costs. [Source: Bloomberg]