Politics on the Hudson

Legislative leaders and Gov. David Paterson were unable to reach a deal today on how to close the state’s $3.2 billion deficit as some lawmakers continued to oppose spending cuts to education and health care.

Paterson has vowed to keep lawmakers in Albany until a deal is reached, but three days of special sessions over the past week has not produced a compromise. Paterson would not indicate Tuesday how long he plans to keep legislators in town.

Paterson insisted the deficit needs to be closed with spending cuts, saying that one-shot revenue sources won’t solve the state’s long-term fiscal problems.  In addition to the mid-year budget gap, the state faces a $6.8 billion deficit next fiscal year, which Paterson predicted could grow to $8 billion to $9 billion.

Paterson held two closed-door sessions with legislative leaders Tuesday in hopes of reaching an agreement.

Legislative leaders suggested they may be agreeable to cutting less than the $3.2 billion proposed by Paterson to at least address the state’s immediate financial problems. Paterson has warned that the state faces running out of money next month.

Paterson suggested that the important piece is that cuts adopted would be recurring, meaning it would help alleviate future deficits. But he also indicated he could accept a deal that’s less than $3.2 billion in deficit reduction measures.

Here’s the governor’s comments after the first leaders’ meeting.

Governor Paterson on DRP from Gannett Albany Bureau on Vimeo.

|  Email This