Governor Paterson says mandatory furloughs for state workers could happen next week. He's promising to follow through with his threat to include that measure in the next round of extender bills, which would go into effect on Monday. That's leaving lawmakers with very few options. Erin Billups reports.

ALBANY, N.Y. -- City workers joined the chorus of those fighting possible state budget cuts.

"We will not take a back seat to any constituency in this state," said Dennis Hughes with the AFL-CIO.

Governor Paterson made good on his threat to furlough state workers one day a week until the budget is passed. He says he will include the measure in next week's emergency bare bones spending bills.

"I'm here to protect all of the residents of the state of New York, not some of them," said Paterson.

Paterson says he must make $250 million in workforce cuts and the public employee unions are not cooperating.

Union leaders say the governor is not listening to them and they're prepared to fight him in court.

Lawmakers say the move is a breach of contract.

"What I think the governor is doing is basically an illegal act," said Senate Democratic Conference Leader John Sampson.

Paterson though is not fazed by the threat of a suit.

"Nobody thought I could appoint a lieutenant governor and I did. The courts sustained it. I've been sued before. I think that the collective sacrifice is preferable to individual layoffs at this time, "Paterson said.

Legislative leaders may not agree with the move.

"I believe the furlough proposal by the governor is more about political gamesmanship than it is about a real sound budget idea," said Assembly Minority Leader Brian Kolb.

"I don't agree that it's necessary. I do agree that we have to have some savings from the state workforce, "Assembly Speaker Sheldon Silver said.

They may have no choice. Either pass the furloughs or cut spending for vital services."

"I'm going to vote for the extender because I'm not going to shut government down. I'm not going to play that game with people's lives," Sampson said.

Leaders say they hope to reach a budget deal before it's necessary to pass the next round of emergency spending bills but it's clear lawmakers remain far from a consensus.

"I'm not sure what the hurdles are. Every day you get a different signal from the other house as to what's important to them or what's not important to them," Silver said.

The governor also sent a bill to the legislature offering state workers an early retirement option… another cost savings measure.