Politics on the Hudson

As the leaders’ meeting got underway this morning, Gov. David Paterson warned that he expects the state’s midyear budget gap could be as high as $3 billion, about $1 billion higher than current projections.

He urged lawmakers to come up with recommendations on how to close the gap, saying a delay in finding a solution would make the state’s fiscal condition worse. He said the state is running out of options to close the gap, saying prior moves such as sweeping funds from other accounts aren’t readily available.

“This is a revenue problem more than it is anything else,” said Paterson, who today is minus the mustache that he started sporting a few weeks ago.

Richard Ravitch is seated to Paterson’s right this morning after the state Court of Appeals yesterday approved him serving as lieutenant governor.