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Saturday, March 20, 2010   57º F

11/22/2009 12:23 PM

Governor Paterson warns of tough times ahead

By: Amanda Farinacci

State leaders will be back to work Monday and Governor Paterson warns of tough times ahead if lawmakers do not agree to a deficit reduction plan that will close the $3.2 million budget gap. Our Amanda Farinacci has more.

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NEW YORK CITY -- Governor Paterson didn't mince words Saturday when talking about the state's $3.2 billion budget deficit.

“We are in dire circumstances,” said Governor Paterson.

Dire, the Governor says, because the State Legislature has not approved his budget reduction plan which calls for more than $1 billion in funding cuts to schools and healthcare.

Without it, Paterson says the public should brace itself for hard times ahead, including delayed payments to pension plans, delayed payments to school districts and cuts to health care and education.
State lawmakers are proposing a less drastic reduction plan which only cuts about $100 million from health care funding.

Senate Democrats and Republicans are blaming each other for failing to reach a deal, but the Governor has different ideas about what's causing the delay:

“Now they've decided that they have sacred cows in Albany because they're afraid of the special interest, and they're scared of what's going to happen to them, but the fact is it's going to happen to all of us including them if we're not able to maintain financial stability,” said Governor Paterson.

Still, Senate Republican leader Dean Skelos says the Governor is part of the problem, saying in a statement:

"We have yet to even get a bill from the Governor. If he was serious, he would have sent us something to act on, like we requested last week. We have had a real plan on the table that the Senate Democrats have embraced. The Governor must be referring to the Assembly Democrats who have yet to propose any plan to close the deficit."

Legislators are due back in Albany Monday afternoon and hopefully some type of agreement will be reached.

Paterson says if one isn't reached, state workers could be furloughed or laid off, and the state could face a rating downgrade. He's hoping the added pressure will get a deal passed before the Thanksgiving holiday.