Paterson Delays Payments to Avoid Default ALBANY (wned) - Governor Paterson has ordered the state budget office to withhold nearly $750 million in scheduled payments to school districts and local governments.

"This state is projected to be insolvent by the end of the month," said Paterson during his Sunday announcement.

"Because of the certifications that we are making today, that will not happen. I will not let this state run out of money on my watch!

Saying that he has not received sufficient help from the state legislature in battling the budget crisis, Governor Paterson moved unilaterally yesterday.

In their recent special session, legislators did move to relieve the state's $3.2 billion dollar deficit, however Paterson maintains another $1 billion in cuts were needed to avoid a fiscal default.

"There's been too much discussion about the political consequences," Paterson told reporters. "And not enough dicussion about the real world consequences that New Yorkers are going to face because of where we are today."

Some critics question the legality of the move. The New York State United Teachers are among those who have threatened to sue Paterson.

The plan will cut millions in scheduled funding to school districts and municipalities across the state.

Buffalo would reportedly receive $1.7 million less from the state this month. Niagara Falls would be shortchanged by $1.4 million.




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