Governor Paterson Wants Cuts Now- Lawmakers Return Home

By CARA MATTHEWS
Gannett News Service

Updated Kristin Donnelly

ALBANY _ Gov. David Paterson proposed legislation Tuesday morning that would give him executive authority to do what's necessary to close the state's $3.2 billion mid-year budget gap if lawmakers can't come to an agreement.

Paterson and legislators have been unable to reach a deal on how to close the deficit. Paterson has proposed $1.3 billion in cuts to education, health care and other areas. This is the third week the Legislature is holding special sessions called by Paterson.

"Cut this budget with me, or I'll do it myself," the governor said in a Web address this morning. (watch the video by clicking on the link on the right hand side of this page where we also have a report with reaction from lawmakers.)

The executive-authority option "would grant me, as governor, a one-time authority to balance our current budget, preserve our credit rating and keep New York afloat," he said.

Paterson said New York is not dealing with a "cash-flow problem that could be remedied with one-shots or fiscal accounting.
"This is a lack-of-cash crisis that threatens the credibility of our state. Unless we act, New York will run out of money even after we delay payments to schools and local governments. This is an unprecedented fiscal emergency," he said.

The governor's proposed cuts, particularly in school aid, have been the main stumbling block to a deal between lawmakers and the governor.

In a short Senate session this afternoon, Senate Majority Leader John Sampson, D-Brooklyn, and Minority Leader Dean Skelos, R-Nassau County, said they appreciated receiving a budget bill from the governor and would work in a bipartisan manner to reach an agreement. They will not, however, agree to mid-year school-aid cuts, they said.

Sampson said there are concerns about forcing school districts to make "decisions during this period of time as to whether or not they can survive and pass those cuts along to our constituencies with respect to property taxes."

Sampson said lawmakers in the Senate, which has 32 Democrats and 30 Republicans, would need time to digest Paterson's voluminous bill.

Skelos said there may be some disagreements on cuts, but everyone understands they need to work in a bipartisan manner and reach an agreement within the next several days. He said he would work to have a bill ready to go for a vote on Monday.

"And John (Sampson) and I have had this discussion that battle will come as we approach 2010 (elections), but right now our responsibility is to get a deficit-reduction plan done and to restore the integrity quite frankly of this chamber, and we will get it done," Skelos said.

The Healthcare Association of New York State urged the governor and lawmakers to return to the negotiating table.

"The Governor's actions today are more about politics than policy. He offers two choices: an unrealistic one-man takeover of state fiscal affairs, and essentially reverting to his initial proposal, eliminating any progress that had been achieved over the last several weeks of discussions," HANYS President Daniel Sisto said in a statement.

Assemblyman Jim Hayes (R) acknowledged it comes into play at the capital. 

"There are some looking at re-election and are making decisions based on reactions to special interests.  There are some legislators in denial that the problem even exists," he said.   

"But, there are legislators ready to work hard to cast the tough votes," Hayes insisted.   

But, one Western New York lawmaker told us if something doesn't get done next week he will call for the leaders to step down.