ALBANY, N.Y. -- State leaders are expected to be back in town Monday to continue efforts to reach an agreement on a deficit reduction plan.

Governor Paterson has said he'll propose an Executive Authority Option if a deal is not reached. The move would give him a one-time opportunity to pass a deficit reduction plan without the approval of lawmakers.

Legislative leaders have expressed their disagreement with the proposal. Paterson says the state can't wait much longer for an agreement.

"And we are out of time, we will continue to negotiate with the legislature, but I feel we have to act now. If they want to challenge it legally, they they should go right ahead. I feel that this is the best interest of the state being fulfilled. And the 1.6 we're going to cut is not nearly enough,” said Paterson.

A revised version of the governor's deficit reduction plan was delivered to the legislature last week before they left for the holiday with modifications to school aid cuts and health care cuts.