Paterson, in Speech, Asks Legislature to Agree to Budget Cuts ALBANY, NEW YORK (WXXI) - The state legislature will meet in special session to try to address New York's looming budget gap, after Governor David Paterson gave a speech on the state's fiscal problems to a rare joint session of the legislature.

Governor Paterson, in a brief, to the point address, restated what he's been saying for weeks. The state has a budget gap of over $3 billion dollars, and he needs the legislature to help him close it.

"Frankly, we are running out of money," Paterson said.

The governor says a cash flow crisis in mid December may mean that the state will not be able to make all of its aid payments to schools, local governments, and vendors who do business with the state.

"We have to act now," said Paterson. "Not next week, not next year."

The fifteen minute speech was interrupted by applause just once. A few lawmakers clapped when the governor said he's also put a bill to legalize gay marriage on the agenda for Tuesday's special session. The fate of that bill in the State Senate is unclear. It's already been approved in the Assembly.

Afterward, Paterson held an hour long closed door meeting with Democratic Party legislative leaders. The Governor, appearing with Assembly Speaker Sheldon Silver and Senate Democratic Leader John Sampson, said he was "flexible" and willing to compromise on his plan, up to a point.

"It would be hard to agree to a deal without a lot of what's been put in there," the governor said.

But he could not predict if agreement on a plan to reduce the deficit will be reached before the end of Tuesday's special session.

Assembly Speaker Sheldon Silver could not say whether his house would approve the most controversial of the governor's proposals, to cut education funding in the middle of the school year by nearly $700 million dollars. But the Speaker did not rule it out, either.

"Everything is on the table," said Silver. "Nothing's been removed."


Senate Leader John Sampson was also non- committal, though Senate Democrats have released an alternative plan that includes refinancing the tobacco bonds and raiding funds at various state agencies and authorities to get through December's cash crunch.

Health care and education groups, who would be most affected by Paterson's proposed cuts, support the Senate alternatives.

Steve Allinger, with the New York State United Teachers, says the cash flow problem that the Governor says will occur in December will be over in January, when new tax payments and other revenues come in. He says his group advocates short term efforts to bridge the gap.

"They could tap the rainy day fund," said Allinger. "They could restructure payments, they could do refinancing."

The education groups protested outside the governor's office. Their chants could be heard echoing in the halls of the Capitol throughout most of the proceedings of the day.

Senate Democrats also had other business to take care of besides the budget. Senators voted unanimously to authorize a committee to look into the conduct of Senator Hiram Monserrate, a Queens Democrat convicted of misdemeanor assault of his girlfriend. The committee could impose sanctions on Senator Monserrate, or vote to expel him from the Senate.
© Copyright 2010, WXXI