ALBANY, N.Y. -- "You've brought us nothing," said Governor David Paterson at Tuesday's state leaders meeting.

By now, you've probably heard the sound bites.

Senate Majority Leader Dean Skelos responded, "Again, you are accusing us of derailing the process."

All of that drama simply became a failed emergency budget session at the Capitol. And now, after both the protestors and the legislators have gone home, and a ballooning state deficit that still brings the threat of future cuts has local mayors worried about their budgets.

Albany Mayor Jerry Jennings said, "I think it's better we have a master strategy here."

Schenectady Mayor Brian Stratton, said, "They told us to plan on $12.3 million. Now they tell us to plan on no more than $11.8 million. That's a $530,000 shortfall."

Troy Mayor Harry Tutunjian said, "We may be starting the year with a hole in our budget if our state aid does get cut, and that's something that we'll have to deal with."

Mayor Tutunjian said his city's budget is intact - for now. It's what could happen next that will have ramifications.

"I think there have to be cuts made," said Tutunjian. "I hope it doesn't come from our local municipalities because any cuts to our budgets will result in our going back to the taxpayers and try to fill those holes or lay off the people and make budget cuts that might take away services."

"We have to look at perhaps even cutting essential services," warned Mayor Stratton. He said leaders are trying to anticipate not only when, but how much their budget may have to shrink. Meaning that as they fend off higher taxes, expect fewer services.

"Because the Legislature did not take action, whatever has been projected for our loss in 2009 could grow to be even higher," said Stratton.

The mayors said with education and health care considered nearly sacred by state lawmakers, it leads to the temptation to cut local aid to cities, local municipalities. And they said that merely shifts the burden to taxpayers - who they argue are overwhelmed as it is.

"You can't shift the burden and that's what's going to happen if you don't look at this with a comprehensive point of view," said Jennings.

"The problem as I see it," said Governor Paterson at Tuesday's meeting, "is no one wants to deliver the bad news."

Now, after legislators have left, local leaders try to plan without knowing what money to plan on.