With the governor's office twisting in chaos over a domestic violence scandal, you could say things are far from business-as-usual in Albany. But that may be good.

In the past, business-as-usual has brought New York dysfunction, high taxes and government spending sprees. This time last year, the economic fallout from banking failures was perfectly plain to read in foreclosure and jobless numbers. Yet how did state government react? It raised spending by nearly 9 percent, including $7 billion in new taxes and fees, only to return midyear to make painful cuts.

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