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Updated 04/06/2010 10:19 PM

State budget latest

By: Erin Billups

Now that the Passover and Easter holidays are behind us, lawmakers are heading back to the Capitol to try to hammer out a deal to close the state's billion dollar budget gap. Our Erin Billups has details.

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ALBANY, N.Y. -- Over the past week, the state's budget deadline came and went, an agreement far from reached. As lawmakers resume budget talks, the state comptroller is reminding them not to resort to gimmicks now considered common budgeting practice.

"It's really gotten so out of hand that it's becoming part of the problem because it puts making the tough choices on spending to a later time. But that time is now," said State Comptroller Tom DiNapoli.

On Monday, DiNapoli released a report outlining the damaging effect that shuffling money between accounts and borrowing have had on future budget deficits. During a radio interview Tuesday, the Governor mocked DiNapoli's plea.

"Tell us something we don't know," Paterson said. "Rather than saying, 'Oh look! There's a fire!' What we need is advice as to how to put the fire out."

Paterson says he's already offered a plan to "put the fire out," a series of spending cuts and revenue raisers.

"They agree on about $3.3 billion, that's a long way from $9.2 billion. My plan closes the whole $9.2 billion if we just voted on it and moved on we would be doing the best for the people of the State of New York," said Paterson.

Lawmakers say though that the Governor's plan is not balanced, making it harder to agree on what needs to be cut and raised. The comptroller says Paterson's plan needs work.

"There were though some areas of risk in terms of revenue assumptions the issue of Aqueduct and VLTs, as we've seen, that's something that hasn't come to pass," DiNapoli said.

While the deal to secure a VLT operator at the Aqueduct racino fell through last month. Paterson said Tuesday the bidding process is starting over and New Yorkers can expect an operator to be chosen by June at the latest, which means the state should be able to count on that additional revenue.

In terms of the budget though, there's still much more work to be done before a consensus is reached. There have been ongoing three-way discussions on the staff level, but Senate and Assembly sources say the Governor has made little effort to sit down and negotiate a deal himself with the legislative leaders.