“1 agree with Governor Paterson’s statement today that the Legislature should be acting on a deficit reduction plan today, instead of waiting until Monday.  The only problem is he has not submitted a bill we can act on, as Senate Republicans called on him to do Thursday,” said Senate Minority Leader Dean Skelos, R-Nassau County.

When asked today why he hasn’t put his budget-cutting plan up for a vote, Paterson said he has. They can vote on it any time they’d like, he said.

Skelos said that Senate Democrats and Republicans have agreed on budget actions that would reduce the budget deficit by $2.6 billion, as opposed to Paterson’s $3.2 billion plan. Democrats hold a 32-30 seat majority.

“The only roadblock to an agreement is Assembly Speaker Sheldon Silver who has yet to publicly issue a single proposal to reduce state spending,” Skelos stated.

Skelos has continued to criticize Silver. They’ve sparred at recent leaders’ meetings.

“When Democrats left Albany, Republicans stayed at the Capitol, ready to go into session to pass a plan,” Skelos said. “The governor should stop pounding the table, do his job and stop worrying about his poll numbers so that we can get a final agreement. ”

Here’s Skelos’ full statement:

STATEMENT BY SENATE REPUBLICAN LEADER DEAN SKELOS

I agree with Governor Paterson’s statement today that the Legislature should be acting on a deficit reduction plan today, instead of waiting until Monday. The only problem is he has not submitted a bill we can act on, as Senate Republicans called on him to do Thursday.

Senate Republicans unveiled a detailed deficit reduction plan that included spending cuts that even the Governor has acknowledged are real and substantive. Our plan also includes other savings proposed by the Governor that are acceptable to Democrats and Republicans in the Senate that would reduce the budget deficit by $2.6 billion.

Senate Democrats have embraced our plan. Much of Governor Paterson’s deficit-closing measures are included in the place so I expect he would support it. The only roadblock to an agreement is Assembly Speaker Sheldon Silver who has yet to publicly issue a single proposal to reduce state spending.

For the past month, no one in Albany has done more than Senate Republicans to push for a solution that would close the $3.2 billion budget deficit. We were the only legislative conference to issue a detailed plan to cut state spending and close the budget gap. We were the first conference to oppose mid-year school aid cuts that would result in property taxes. We were the first legislators to oppose any tax increases to close the deficit.

When Democrats left Albany, Republicans stayed at the Capitol, ready to go into session to pass a plan. The Governor should stop pounding the table, do his job and stop worrying about his poll numbers so that we can get a final agreement. The Assembly has produced nothing more than talk while Senate Republicans have provided leadership and pushed to get a fiscally responsible result that reduces state spending, now and in the future.

Senate Republicans, who called for enactment of a state spending cap as part of a plan to address the state budget deficit, passed a spending cap bill twice last year with bipartisan support and I am pleased the Governor said he would join us and get one in place by year’s end.

Taxpayers are angry over increased spending and taxes and frustrated by the inaction in Albany. We shouldn’t have to wait until Monday to fix a problem that could have been resolved yesterday.

A report from Moody’s Investors Service this week, meanwhile, said the state could lose its stable credit rating “if there is no action taken by the state to close the gap, or if action is taken but is largely one-time in nature (therefore increasing the structural imbalance in the out years).”

Paterson is at odds with lawmakers over cutting aid to schools and health care to help close a $3.2 billion mid-year budget gap. After four days of failed negotiations in Albany, lawmakers went home Thursday and plan to return Monday.

But Paterson continued his tough talk today against legislators who don’t want to make cuts. He said spending reductions now would also help lower the deficit next fiscal year, which he estimated may be at $9 billion. The current fiscal year expires March 31.

Come late December, the state faces running out of money if cuts aren’t made, he and other state officials said. That means the state would have to borrow and possibly delay payments to local governments in schools.

Comptroller Thomas DiNapoli warned today that the state faces a $1.4 billion cash deficit next month. Paterson said that if all the state’s money was pooled together next month and all the bills were paid, the state would have about $30 million in the bank – a remarkably low amount for a state with a $132 billion budget.

“We can’t afford to fall back on the old ways of addressing a long-standing problem with short-term fixes,” DiNapoli said. “It hasn’t worked, and it won’t work. A patch today is a problem tomorrow.”
Without close the budget gap, Paterson said New York would have resort to what other states have done, such as laying off state workers, instituting unpaid weeks off or even eliminating programs, such as early childhood programs and pre-kindergarten classes.

“I’ve been telling you what happened in the other states,” Paterson told reporters this morning. “That’s what we’re going to have to do. I told you that 26 states shut down their early childhood education and pre-kindergarten programs, and that’s what we’re going to have to do.”

Paterson said he spoke to legislative leaders this morning to advise them of the dire predictions. But he said lawmakers have so far offered no cuts to schools and only about $100 million in cuts to health care. Paterson has proposed about $1.3 billion in cuts.

“I think this is a lot more serious than the interest of some of the legislators who would rather go home and be heroes saying look I didn’t cut school aid or look I didn’t cut health care,” Paterson said.

Nys Go Report 1109

DiNapoli said his office will release a report that shows New York faces a cash-flow deficit of up to $1.4 billion in late December, higher than projections from Gov. David Paterson’s budget office.

It means the state is running out of money to pay its bills, DiNapoli warned. Paterson’s office last month predicted a $1.1 billion cash-flow deficit in late December.

“The state does run the risk of running out of cash in a significant way in December,” DiNapoli told Gannett’s Albany bureau. “It really underscores the need for the governor and the Legislature to come together on a deficit-reduction plan.”

DiNapoli urged that spending cuts need to be part of the budget deal, which so far lawmakers have resisted.

Without a budget-cutting plan, state officials said New York may have to delay payments to schools and local governments or borrow to pay its bills, which would hurt the state’s credit rating and its ability to borrow money.

The state has been dipping into a fund controlled by the comptroller called a Short Term Investment Pool, which mainly invests in short-term treasury bills and allows the state to borrow from it to pay monthly bills. But even that fund faces being almost depleted by the end of the year, officials said.

“We’re on a razor’s edge when it comes to cash flow in December in terms of the resources of the Short Term Investment Pool,” said Paterson’s budget spokesman Matt Anderson.

The New York Times reported Giuliani will not run for governor, and the Daily News is reporting he’s going to run for Senate.

There is no official word from Giuliani’s camp, but a spokeswoman said a statement is expected soon. On Sunday, Giuliani wouldn’t say what he would do.

A top Republican official confirmed Giuliani’s decision not to run for governor, saying instead that Giuliani is considering running for U.S. Senate next year against Democratic Rep. Kirsten Gillibrand.

“He is clearly not interested in running for governor, but he is seriously looking at running for the Senate,” the source said.

The news was not surprising to Republican leaders across the state, who long believed that Giuliani was not poised to run for governor.

On Monday night, Giuliani gave a speech to the Molinari Republican Club in Staten Island. Attendees said the speech was geared toward national politics.

“In all honesty, his speech that he gave, which was very good, was more of a national speech, like he was going to run for United States Senate or president again,” said Conservative Party chairman Michael Long.

“It was clear he was not going to run for governor.”

Some county GOP chairmen said they hadn’t heard directly yet that Giuliani wasn’t going to run, but said they are pleased he’s deciding now so the party can focus in on other candidates.

“If this is actually true, I’m delighted it’s now and not a few months in the future,” said Monroe County GOP chairman Bill Reilich.

Rockland County GOP chairman Vincent Reda said the party will have strong candidates on its statewide ticket next year.

Rick “Lazio has already announced, and I’m sure there will be some others looking for the top spot,” Reda said. “I think things look a little brighter for us in the state since this last election period.”

As for Lazio, the only announced GOP candidate, he’s focused on his campaign, a spokesman said.

“we don’t what mayor Giuliani’s plans are,” said spokesman Barney Keller. “We just know that Rick Lazio is running for governor and if elected, he will enact sweeping fundamental changes to state government.”

Paterson said he continues to get pushback from state senators, Democrats and Republicans, over his plan to cut aid to schools and health care.

Meanwhile, Assembly Speaker Sheldon Silver, D-Manhattan, said he’s telling his conference to return to Albany on Monday – signaling that a deal is not near.

“It’s likely we’ll be back next week,” Silver said on WGDJ-AM (1300) in Albany.

Paterson has kept lawmakers in Albany every day this week to get a budget deal in advance of about $6 billion in payments due in December to schools and local governments. Paterson said the state only has about $3 billion to pay the bills.

“Some of the legislators, I must say, do understand this crisis,” Paterson said on WOR-AM (710) in Manhattan. “They tell it to me. They want to get out of here and balance the budget. Others think of excuses.”

The trouble, Paterson suggested, lies in the state Senate, where Democrats hold a narrow 32-30 seat majority. A number of Democratic senators oppose cuts in school spending, while Republicans have not indicated a willingness to go along with Paterson’s budget plan. Paterson has proposed about $1.3 billion in cuts, mainly to schools and health care.

Paterson said some lawmakers want to link cuts to a cap on state spending, which Senate Republicans support but is not backed by Assembly Democrats. Senate Democrats, meanwhile, want no cuts to schools and are proposing inflated revenue projections from the potential collection of taxes on Native American reservations, Paterson charged.

“You wonder how you get a negotiation going on with that kind of element injecting itself in the process, obviously trying to placate other interests,” Paterson said.

Senate Democrats have proposed about $650 million in cuts, mainly to health care, but would leave schools harmless. Legislative officials contend that Paterson is seeking about $850 million in cuts as a compromise.

Silver put the blame on Senate Republicans, suggesting that Democrats don’t have the 32 votes in its conference to pass a budget agreement.

“The Republicans are not interested in governing. They’re all about politics,” he said. “They are all about rhetoric and the people will not be fooled by that.”

Senate Republicans countered that Silver hasn’t offered any proposals publicly to close the budget gap, while the other legislative conferences have.

“The speaker has not put anything on the table,” said John McArdle, spokesman for Senate Republicans. “What the speaker has admitted is what everyone has known that he has no proposals to close the deficit.”

The state Court of Appeals rejected a Christian legal group’s claim that the extension of benefits to gay couples was illegal based on current state law.

But the court stopped short of declaring same-sex marriage in New York legal, saying that such a decision should be left to the state Legislature. The state Senate has yet to pass the measure.

“We end … expressing our hope that the Legislature will address this controversy,” the ruling found.

The Alliance Defense Fund of Scottsdale, Ariz. argued that since same-sex marriage is not legal in New York, state and local governments should not extend equal benefits to gay couples.

The group lost in lower courts, which ruled that extending the benefits does not conflict with current laws.

In June 2006, Westchester County Executive Andrew Spano issued an executive order that the county would recognize out-of-state marriages of same-sex couples. In 2007, the state agreed to allow gay couples married out of state and employed by New York and some local governments to receive health benefits for their families.

The Court of Appeals rejected the challenges by the Alliance Defense Fund, but was split on their
reasons why.

In a written opinion, Judge Carmen Beauchamp Ciparick warned that the patchwork regulations by different state and local government are unwieldy.

“The effect of the majority’s rationale in affirming these orders,” she wrote, “will be to permit an unworkable pattern of conflicting executive and administrative directives promulgated pursuant to the individual discretion of each agency head.”

Marriage Ruling

“I feel that we are continuing to negotiate and we are just going to have to lock this down as soon as we can,” Paterson told reporters after announcing a deal on public authorities reform.

As for whether he’ll keep the Legislature in town until a deal is reached: “I’m not going to make any long-term threats, but as you’ve noticed although it has not been done, we continue to work.

“Some officials said the sides are about $200 million apart, but Paterson urged that it’s not about hitting the $3.2 billion target as much as it is establishing recurring budget savings.

He has proposed cutting $1.3 billion in state spending, mainly through cuts to schools and health care. Senate Democrats have balked at the cuts, instead offering about $600 million in cuts to areas other than education.

“To me, it isn’t the quantitative agreement on a number,” the Democratic governor said. “It’s the quality of actually hitting the target in ways that will be real and recurring.”

He said the bill removes some of his initial concerns, such as requiring authorities to sell land at fair market value no matter the use and not giving authority board members autonomy on local issues.

“Our state representatives in Albany deserve a lot of credit for dramatically improving a public authorities reform bill that, as initially drafted, would have done more harm than good,” Bloomberg said in a statement.

“We have always supported reform of the public authorities, but we had major concerns about the consequences the original bill would have produced.”

They’ve passed legislation that would let local governments make it easier to form cooperative health-benefit plans and other consolidations and eliminated a loophole that allows certain serious felons to become eligible for parole earlier than intended.  And they have passed a municipal energy-loan program to help homeowners make energy efficiency improvements.

Today, Paterson signed “Leandra’s Law,” a tougher DWI law. It is named after 11-year-old Leandra Rosado, who died last month in an accident in Manhattan as a passenger in a vehicle whose driver was drunk, police said.

“We have now given law-enforcement officials the tools they need to keep people who act with such reckless disregard for human life off the roadways of our state,” Paterson said at the bill signing.

Assemblyman David Koon, D-Perinton, Monroe County, said he submitted legislation 6 1/2 years ago to make DWI with a child in a car a felony, which the new law does. Koon, whose daughter was murdered in 1993, said he was frustrated that it took so long for the measure to become law.

“You know how I feel about kids and losing a child and it just tries me nuts,” Koon said outside the Assembly chambers. “Nobody would even touch” the bill.

Paterson and legislative leaders are now announcing a deal to reform the state’s public authorities. They are scheduled to go into session tonight to pass the bill.

But still no deal on a deficit-reduction plan. And Paterson’s other major agenda item—legalizing same-sex marriage—remains on hold.

But the report by The Institute on Taxation and Economic Policy, titled “Who Pays? A Distributional Analysis of the Tax Systems in All 50 States,” found that New York was among four states – along with Delaware, Washington D.C. and Vermont—that has the least regressive tax system.

The report explains that New York and the District of Columbia have a “close-to-flat tax system overall” because it has an Earned Income Tax Credit and an income tax with “relatively high top rates.”

It notes that ten states – Washington, Florida, South Dakota, Tennessee, Texas, Illinois, Arizona,
Nevada, Pennsylvania, and Alabama – have the most regressive taxes.

Unions pushed New York earlier this year to raise income taxes on people who make more than $250,000 a year as a way to generate—what lawmakers estimated at the time—was $4 billion in new revenue for the state. But with the recession and people leaving New York, the revenue has been much lower.

Here’s the Fiscal Policy Institute’s take on New York’s standing in the report, from their press release:

“I don’t know why people are walking around here saying we’re very close to a deal. I don’t know why people think they’re leaving here, and I don’t know why it is so difficult to understand that we have a fiduciary responsibility to the people of New York,” Paterson said.

“We have obligations that have to be met in December and the only way to reduce this deficit is real and recurring cuts, not gimmicks or phony estimates of revenues that don’t exist,” he continued.

He vowed to keep them in town until a deal is reached.

“Now there are a lot of unhappy people leaving the building this evening because they’re coming back tomorrow,” he said. “This is a prelude to what will be continued unhappiness because it reflects the way this entire state will be if we don’t handle its finances, which are in very dire straits right now.”

He added, “So I would expect that people get back in here tomorrow and stop making plans because I’m making the plan. The plan is that we’re going to keep working until we get this done.”

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.

Senate President Sen. Malcolm Smith, D-Queens, said the two sides are millions of dollars apart on a budget agreement, not billions. While Smith said the sides are close, he said an agreement might come out to less than $3.2 billion.

“The main thing is making sure that the cuts are fair, making sure that they don’t disproportionately hurt any particular group,” Smith said told reporters. “And that’s where we are.”

Smith said health care and mid-year school aid cuts are among the issues holding up an agreement.
Senate Democrats remain opposed to school aid cuts, he said.

“What we will do is get to a point where we will sit down with our members (and) we will look through everything. Health-care right now is a sticking point, there’s no question about it.”

Assembly Speaker Sheldon Silver, D-Manhattan, told reporters that he’s ready to reach a deal “anytime they’re ready. Obviously, the hangup is not here,” referring to Senate Democrats.

Silver disagreed with the belief of some Senate Democrats that the state isn’t in jeopardy of running out of money.

“I don’t agree with them,” Silver said. “At some point, when there is $4 billion or $3.5 billion less cash than there is obligations, you’ll run out of money.”

He said schools can absorb some cuts but “obviously we have to be careful that we don’t burden the ones that can’t, but there are a number of them that have reserves.”

Assembly Republicans, meanwhile, presented a list of budget remedies this morning and dismissed Paterson’s criticism that lawmakers aren’t coming up with their own solutions.

“We believe the deficit is real,” said Assemblyman James Hayes, R-Amherst, the ranking Republican on the Ways and Means Committee. “The fact that majorities have retreated behind closed doors is an outrage.”

Kolb’s conference is rejecting cuts to education, health care and local aid mid-year, saying they could lead to property tax increases. They proposed a series of other measures, including:
—A 20 percent increase to out-of-state tuition for the State University of New York, which would raise $99 million mid-year.—An end to purchases of open space, which the conference says would save $30 million mid-year.—Agency efficiencies, which would cut $280 million.—A 5 percent cut to state contracts, which would save $300 million.—Elimination of extra spending by the legislature, which they say would generate $1.5 billion.—Allowing counties to decide which optional Medicaid programs to provide, which early estimates showed could save $1 billion, though conference staff thinks that figure is smaller with the amount of time that has passed already.—Elimination of the Indian Health Program, which would save $8 million.—Elimination of legislative earmarks, which would save $175 million.—Consolidate administrative agencies with overlapping functions, which would save $241 million.

The measure would also require people convicted of a DWI in New York, and every person convicted of a DWI-related crime, to have an ignition interlock installed as a condition of their sentence.

The Assembly and Senate said they’ve reached an agreement to pass the bill, called “Leandra’s Law.” It is named after 11-year-old Leandra Rosado, who died last month in an accident in Manhattan as a passenger in a vehicle whose driver police said was drunk.

The Assembly initially didn’t want to make it a felony for all drunk drivers who had a child in the car, only for those who had blood alcohol levels more than twice the legal limit of .08.

But after pressure, the Assembly said it would go ahead with the tougher law, which they said would be the toughest drunken driving law in the nation.

“If enacted, this bill will make our roads safer and ensure the security of our families,” said Assembly Speaker Sheldon Silver, D-Manhattan.

The legislation would make it a felony to drive drunk with a passenger under age 15 with a blood alcohol level above .08. The law would carry a possible prison sentence of up to 1-1/3-to-4 years for a first offense.

Additionally, the law would require interlock devices that prevent intoxicated drivers from starting a vehicle. And if a convicted driver tries to bypass or tamper with the system, the law would consider that a crime.

Gov. David Paterson today said that the controversial new $25 fee on license plates was nothing more than a “revenue grab” and said people do not need new plates early.

The state hoped to bring in $129 million in new revenue by forcing drivers to get new plates when their vehicles’ registrations expire. Paterson said the state moved up by a year the requirement for new plates in order to raise revenue in the face of the state’s budget woes.

“Is that an idea that in a normal circumstance would make any sense? No, it doesn’t make any sense because people don’t need license plates early,” Paterson said on WWRL-AM (1600) in New York City.

“It was a revenue grab. We’re admitting it. And when so many people objected to it, we can’t argue with them and we’ll take it off the table. But when we take it off the table, somebody has got to find $129 million of cutting from the agencies to balance our books.”

His comments come after his staff had argued the new plates were needed not only to boost the state’s coffers but also because the current ones’ reflectivity is fading.

The reflectivity argument was debunked by county clerks, who petitioned the state to dump the new fee – which lawmakers and Paterson are expected to do.

Paterson and legislative leaders announced earlier this week that they would remove the fee, which they approved in April, if other revenue can be found. The new fee on plates – which would increase from $15 to $25 –- was scheduled to take effect in April.

County clerks submitted more than 100,000 signatures Monday asking the state to drop the fee.
But state officials indicated that they still plan to move forward with producing the new “Empire Gold” license plate—with dark blue and gold colors –- until a final deal is reached to find a new revenue stream.

Ulster County Clerk Nina Postupack said this morning that there’s no need to produce new plates, saying there is plenty of the current ones in stock. She said some states, like Massachusetts, haven’t changed plates in 20 years.

“It’s our understanding those plates (in New York) have been made for years to come,” she said.

Paterson has indicated he plans to keep the state Legislature in Albany until a deal is complete, which lawmakers expect may still be days away. He has called another special session for Tuesday after ordering them to Albany last week for what ended up being a failed session.

Paterson has proposed $1.3 billion in cuts, mainly to education and health care, to close the gap. But Senate Democrats in particular have been opposed to the cuts and are seeking alternatives.

Senate Finance Committee Chairman Carl Kruger, D-Brooklyn, hand delivered a letter to Paterson’s office Monday asking him to start taxing cigarettes sold on Native-American reservations.

Kruger claims the tax could generate up to $1.6 billion in revenue for the state, but state officials said it would be much less. The state has tried unsuccessfully for years to collect the tax from tribes.

Sen. Stephen Saland, R-Poughkeepsie, said collecting the tax is not a short-term solution to the state’s fiscal problems. He warned, as Paterson has, that the state faces running out of money.

“At some point we will run out of money. Maybe it won’t be by December 31, maybe it will be by January 31,” he said. “It’s not a question of if; it’s only a question of when if we don’t close the deficit.”
Kruger and other Senate Democrats said cuts to schools mid year would hurt classroom education.

“It’s my hope that there will not be education cuts, but I cannot say that will not happen,” said Sen. Suzi Oppenheimer, D-Mamaroneck, Westchester County.

Some Democrats have floated raising $1 billion through a temporary surcharge on HMOs, but Kruger said that would be coupled with a cap on premiums charged to health insurers. The proposal was sharply criticized by business groups, saying it would hurt companies and be another tax on New Yorkers.

“They will be committing the same fiscal sins of the past if they raise the taxes on health insurance,” said Brian Sampson, executive director of Unshackle Upstate.

Sampson and other business groups said spending cuts are needed. Paterson continued to urge Monday that cuts need to be part of an agreement.

“This is why the state is in so much trouble because we have a spending addiction that has overcome Albany for the last couple of decades,” Paterson said on WVTL-1570 AM based in Amsterdam, Montgomery County.

Kruger hand-delivered a letter to Paterson saying he should collect the taxes.

“We have an obligation as elected officials and as law-abiding New Yorkers to say that everybody has to pay their fair share. The denial of these taxes is no different than saying to somebody in Westchester County, ‘Don’t pay your property tax, and if you’re upset by that, then go out and picket on the Sprain Brook (Parkway).’”

Matt Anderson, spokesman for Paterson’s budget division, said his office estimated taxing the cigarettes would bring in a more modest $200 million to $300 million annually.

The “$1.6 billion is certainly on the high side,” said Matt Anderson, spokesman for Paterson’s budget division. “We don’t think it’s ultimately achievable.”

The letter comes after a New York Times article today said that Cuomo is already talking about a statewide ticket to run along with him as a gubernatorial candidate.

The article mentioned Rochester Mayor Robert Duffy as a potential lieutenant-governor candidate, and a source familiar with the Cuomo’s staff discussions said this morning said that Duffy and Cuomo have developed a strong rapport.

As for Lazio, part of his letter states:

“I am writing to ask that you and any associates that may be acting on your behalf stop trying to undermine the governor. If you think you can do a better job than Governor Paterson, why don’t you say so publically?,” Lazio wrote. “You’ve been in Albany for the past two and a half years, and you have been a part of Albany culture for decades, but have never taken on the failing legislative leadership when you could have.”

Barney Keller, Lazio’s spokesman, questioned the timing of the leak to the Times, saying it undermines Paterson’s ability to negotiate with lawmakers this week to close the state’s $3.2 billion deficit.

“You or your friends want to speculate about who is going to be your lieutenant governor? Fine. Can we do it after the governor’s done negotiating a $3.2 billion deficit reduction package?,” Keller said.

For his part, Paterson did a blitz of six radio stations this morning and was asked repeatedly about whether he will run for governor next year. He insisted he is.

On Buffalo station WBEN, Paterson was asked whether he would still run if he faces a primary against Cuomo.

“I can’t speculate on what anyone else is going to do,” Paterson said. “I’m running for governor. I obviously considered all those possibilities when I said I’m running for governor, and I’m running for governor.”

Here’s Lazio’s letter:

Rick Lazio Letter to Andrew Cuomo, 11-16-09

The Democratic governor’s favorability rating was 33 percent, up from 27 percent in a Siena poll a month ago.

That was about the only good news in the poll for Paterson, who has vowed to run for a full four-year term next year despite the record-low poll numbers. He started running campaign ads last week and has sought to show strong leadership amid the state’s financial woes.

But his job performance rating was 21 percent positive, virtually unchanged from last month, and the poll found he would lose in hypothetical matchups against other leading Democrats or Republicans.

“While the governor’s favorability rating saw slight improvement, no other measure of his electability increased,” said Steven Greenberg, a poll spokesman.

Paterson trailed Attorney General Andrew Cuomo by nearly 60 percentage points, 75 percent to 16 percent, in a potential Democratic primary, if Cuomo decides to run for the post.

Paterson also would lose to former New York City Mayor Rudolph Giuliani by more than 20 percentage points, and for the first time in a Siena poll trailed former Rep. Rick Lazio by three percentage points, 42 percent to 39 percent. Giuliani has not indicated whether he will run for governor, while Lazio is actively seeking the GOP nomination.

The poll also looked at the statewide viability of leaders across the state and found that most had little name recognition outside their home regions.

Of 17 potential Democratic candidates for statewide office, more than 50 percent of voters had no opinion of 13 of them. For example, 84 percent of voters had no opinion of Sen. Jeffrey Klein, D-Bronx, and 83 percent had no opinion of Assemblyman Richard Brodsky, D-Greenburgh, Westchester County. The two are considered potential attorney general candidates next year.

On the Republican side, 88 percent of voters had no opinion of Monroe County Executive Maggie Brooks, while 87 percent had no opinion of Rockland County Executive Scott Vanderhoef, who was the GOP candidate for lieutenant governor in 2006.

The poll was conducted Nov. 8 through 12, 2009 to 800 New York registered voters. It has a margin of error of 3.5 percentage points.

The sides said they will seek alternative revenue sources to make up for about $129 million a year the new fee was expected to generate in the 2010-11 fiscal year, which starts April 1.

The move comes in advance of a protest planned Monday by county clerks at the state Capitol. Clerks say they’ve accumulated more than 100,000 signatures of New Yorkers opposed to the new fee.

“We’re delivering their message to those who supported this license plate plan that the hardworking taxpayers of New York state won’t be ignored any longer,” said St. Lawrence County Clerk Patty Ritchie, who heads the state Association of County Clerks.

As part of the current budget, state leaders agreed to increase the fee from $15 to $25 and require drivers to get new plates when their registrations expire. It was part of about $7 billion in new taxes and fees included in the budget to close a nearly $18 billion budget gap.

Paterson said that if “the Legislature works with me, prior to the release of the 2010-11 executive budget, to identify real, recurring savings that will replace the revenue that would be lost, I will eliminate the new license plate requirement.”

So far, no alternatives have been proposed as the state grapples with a $3.2 billion mid-year budget deficit. Lawmakers are due back in Albany on Monday to try to close the budget gap.

But a statement Sunday from Assembly Speaker Sheldon Silver, D-Manhattan, and Assembly Minority Leader Brian Kolb, R-Canandaigua, said the fee would be removed.

“The plan to issue new license plates for all vehicles will not go forward,” the statement said. “We understand that the governor is committed to this repeal, and we will work with him.”

Senate Minority Leader Dean Skelos, R-Nassau County, said now that Democrats have abandoned their “lame-brained plan” they should look to remove other taxes and fees.

Secretary of State Hillary Clinton was clear, however: She’s not running for governor.

Asked about a possible run by George Stephanopoulos and how polls show him in strong position, Giuliani responded:

“I’ll take it all into consideration and decide it pretty soon. But I haven’t really focused on it yet, but I will very soon.”

Asked which way he is leaning, Giuliani said, “Am I leaning for or against? I’m not leaning at all. I’m right straight ahead.”

Giuliani plans to give a speech Monday to the Molinari Republican Club, where some have suggested an announcement—or a better indication of his plans—could come.

As for Clinton, former New York senator, she told Stephanopoulos that a run for governor is not in her future and shot down the speculation.

“No, no, no. That’s another one of those stories that never will die and I hope maybe we can put it to rest today,” she responded to his question about it.

“No, I am committed to the job that I have. It is an extraordinarily important time to be the secretary of state of my country and to work with President Obama in trying to pursue our interests and advance our values around the world, and that’s what I am going to continue doing.”

So is that rumor dead, Stephanopoulos asked?

“That rumor is dead,” she said. “And if you can please, you know, put it in a little box and send it off somewhere I’d appreciate it.”

With the next campaign finance filing about two months away, Attorney General Andrew Cuomo is bringing in John Bon Jovi to give a special performance at his birthday fundraiser next month.

Tickets start at $1,000.

Meanwhile, an event for Gov. David Paterson is being held next Thursday with Ellen Malcolm, president and founder of EMILY’s List. She will join First Lady Michelle Paige Paterson at a Women for Paterson event at the home of Sally Minard in Manhattan. It’s one of several fundraisers Paterson has coming up.

The January filings could be a key moment for Democrats to determine whether Paterson can be a viable candidate next year amid Cuomo’s popularity in the state and his fundraising prowess.

Cuomo ended the July period with $10 million in the bank compared to $5 million for Paterson.

Paterson held a half-hour conference call with legislative leaders that reporters were able to listen in on.

“I’m less and less ideological about deficit reduction,”  he told them near the end of the call. “We just have to do it, in other words if the four of you agreed on something that I don’t right now, I’d be persuaded to go along with it.”

He continued, “Because my main thrust is doing what’s right for the people of New York, which is not to injury our financial position as so many states have.”

But asked later by reporters if he’s stepping back from his plan to cut $1.3 billion in spending, largely in health-care and education, he indicated that the state would be hard pressed to do so.

“I don’t see how health care and education cuts could not be part of the plan since they are 55 percent of the budget,” Paterson said. “And this is where I talk about irresponsibility. You just can’t keep saying that we take zero.”

The conference call led to some heated exchanges between Senate Minority Leader Dean Skelos, R-Nassau County, and Assembly Speaker Sheldon Silver, D-Manhattan. Skelos sought to press Silver and Senate Democratic Leader John Sampson, D-Brooklyn, over whether they support mid-year school cuts; Paterson has proposed to cut $686 million to schools.

“Senator, I don’t believe that the secretary of state swore you in as a district attorney or a prosecutor here that you can just begin to ask all these questions,” Silver responded to Skelos.

Silver charged that Skelos, despite his contention that Senate Republicans have laid out deficit reduction options, hasn’t proposed any cuts other than $25 million from a foreclosure program.

“You’re willing to raid every fund in the state and be totally irresponsible,” Silver continued, adding that “This is not a political discussion. This is a practical discussion. Put the politics back in your conference.”

To that, Skelos responded: “You called me a prosecutor. You’re a very good trial lawyer in obfuscating what the issue is here. And the issue is we have a right to know, the public has a right to know, what cuts in spending are you supportive of?”

Silver said, “I’m supportive of cuts that will bring us to a balanced budget—and (with an agreement) in both houses.”

They will back in Albany on Monday and Tuesday to try to close the deal.

“I wouldn’t have the slightest idea,” Paterson responded. “If I’m the Democratic nominee, I’m sure he would.”

That led to the follow-up question: Does he expect to be the party’s nominee?

“Nobody knows what the future is, but I will be a candidate,” the governor responded amid the ongoing belief that Attorney General Andrew Cuomo will run for the seat.

“I’m having enough trouble dealing with the present. I can’t tell you about the future. You’ve reached the wrong office,” he said.

After Tuesday’s failed session, he has called lawmakers back to Albany on Monday and Tuesday to close a $3.2 billion mid-year budget gap.

“I saw some progress this week,” Paterson said at the New York City Veterans Day Parade. “I didn’t make them work on Veterans Day. I’m going to give them a few days to think it over. We’re coming back on Monday and then there’s no option: We have to reduce deficit in this state.”

Asked who is to blame for the delay, Paterson wouldn’t pass blame.

“Right now, while the parties are talking, I’m not going to assess blame,” he said. “I’ll assess blame if it doesn’t work out, but right now if we get this done next week, it will be plenty of time to save our state from financial collapse because we can’t meet our debts in December.”

Paterson was asked again about whether he would revoke a new fee on license plates next year, and he reiterated he will consider it if the state can find another way to raise the $129 million in revenue it is expected to create.

“I’m optimistic if I can find a way to replace the $129 million hole that it will place in our budget, and I’ll reconsider it,” he said. “But what I first need is for everybody to concentrate on deficit reduction, not added spending.”

“I did nothing wrong. I was charged with no specific crime. I did business within the rules and the law as a part-time senator,” Bruno said this morning on Fred Dicker’s radio show in Albany.

Prosecutors have focused on Bruno’s outside business dealings and whether he steered state contracts to firms with which he had relationships.

On Tuesday, prosecutors called North Country Republican Sen. Betty Little to testify over grants that she received for her district that benefited groups Bruno had contracts with.

But Bruno, as he has since he was charged in January, has denied any wrongdoing, saying that as a part-time lawmaker, he was able to have outside income. Prosecutors charged that Bruno received more than $3.2 million from companies in exchange for his influence.

“I never abused the public trust that people put in me. I never used politics to make money. I just never did that,” Bruno said.

The trial will resume tomorrow.

“The taxpayers of New York delivered a strong message last Tuesday that they are sick and tired of out of control government spending and the high taxes and fees that pay for it.  Families have had to sacrifice and cut back, businesses have had to lay off employees, people across the state are struggling to make ends meet.

“Unfortunately, by failing to cut government spending it is clear that Senate Democrats and other Democrat leaders haven’t gotten the message.

“While the Democrats were able to agree on a budget that increased spending to unsustainable levels, they have not been able to agree on a plan to close the deficit created by their disastrous budget.

“The taxpayers expect us to make tough decisions to cut state spending and balance the budget, just like they have to do every day.  Senate Republicans came to Albany ready to cut state spending now and cap it in the future.  As we wait for an agreement, the deficit grows larger and so does the anger and frustration of the taxpayers.”

He said today’s session wasn’t a bust because it got lawmakers to negotiate seriously about the budget problems.

“It’s not where this process begins, it’s where it ends and it’s when it ends,” Paterson said.

The governor said part of the discussions center on changes to the $471 million in health-care cuts he’s proposed, saying lawmakers have pointed out that the cuts would actually come to about $748 million when federal matching funds are considered.

He said they are working on health-care cuts that wouldn’t impact the federal match.

Paterson said Senate Democrats have been more cooperative toward his budget-cutting plan and that he’s confident the sides will reach agreement next week.

“I expect results next week,” Paterson said.

Asked about the return to special session, Senate Democratic Leader John Sampson, D-Brooklyn, said he’s also confident a deal will be reached by then.

“I think we are going to have it done by then. We’re working extremely hard to get it done. We have moved, and I think the governor has acknowledged that,” Sampson said.

Asked if cuts to education and health care will be part of the deal, even though his conference initially balked at cuts, he responded: “At the end of the day, it’s going to be a shared sacrifice.”

Despite a special session of the Legislature called by Paterson to close a $3.2 billion mid-year deficit, he and legislators remained at odds over how to remedy the state’s immediate fiscal problems.

Paterson gave a rare mid-year address to the Legislature on Monday, warning that the state faces running out of money if spending cuts aren’t made.

But that appeared to do little to persuade lawmakers to act. Instead, Senate Democrats continued to insist they would not support the roughly $1.3 billion in cuts Paterson has proposed, which would mainly hit schools and health care.

Senate Democrats had initially proposed no cuts, which was rejected by Paterson. But a compromise was still uncertain as lawmakers were expected to work into the night on other legislation proposed by Paterson.

A Senate official said this afternoon that Paterson initially appeared willing to accept cuts at slightly less than $1 billion, which the sides were working toward. But Paterson has since moved back to the $1.3 billion figure, the official said.

Legislators have reached on agreement on four of the nine items proposed by Paterson, but a bill to legalize same-sex marriage was likely to be put off by the Democratic-led Senate. There did not appear to be votes to pass the gay-marriage bill.

The Assembly and Senate spent much of the afternoon behind closed doors sorting out what pieces of legislation could pass.

Some Republicans, who are in the minority, knocked Democrats for failing to reach a budget deal. All 212 legislators returned to Albany, at taxpayers’ expense, but had no budget bills to vote on because the sides haven’t reached an agreement.

“To leave this town without coming up with some kind of deficit reduction package (DRP) would really be a travesty,” said Sen. Stephen Saland, R-Poughkeepsie.

But Democrats they were trying to reach an agreement, and would likely come back next week to pass it.

“Hopefully we’ll get an agreement in principle in the DRP and have the specifics into bills that will age over the weekend and we’ll come back next week,” said Senate Majority Leader Pedro Espada, D-Bronx. “That’s the scenario that is reasonable at this point.”

Aides said that the sides were ready to pass four bills proposed by Paterson, and the bills were printed to be voted on:
—Making it easier for local governments to form cooperative health-benefit plans and other consolidations.
—Eliminating a loophole that allows certain serious felons to become eligible for parole earlier than intended.
—Changing the state’s foreclosure law to help homeowners stay in their homes.
—Establishing a municipal energy-loan program to help homeowners make energy efficiency improvements.

Lawmakers were also seeking an agreement on enhancing penalties for operating a car while impaired by alcohol or drugs while a child is a passenger.

But agreements still appear uncertain, and senators and aides said privately that they are not expected to take up the bill today to legalize same-sex marriage.

Senate Democratic Leader John Sampson, D-Brooklyn, was noncommittal this morning about whether the bill will be voted on. He said he has yet to discuss the matter with the bill’s sponsor, Sen. Thomas Duane, D-Manhattan, the Senate’s first openly gay member.

“I think we just are going to continue to work it out with Senator Duane and we’ll go from there,” Sampson said.

The same-sex marriage legislation is among nine bills Gov. David Paterson has asked lawmakers to consider in calling the special session, which starts at noon.

On Monday, Paterson gave a rare mid-year address to a joint session of the Legislature to implore them to close the state’s $3.2 billion deficit and approve the marriage equality bill. He is also asking them to pass a new pension tier for state workers and reforms of the scandal-scarred public authorities.

Lawmakers said they continue to work toward compromise on how to close the mid-year budget deficit. The Democratic-led Legislature has been reluctant to go along with cuts in aid to schools and health care proposed by Paterson.

Paterson warned lawmakers Monday that the state faces running out of money to pay bills next month without spending cuts.

“The goal is to get something done,” Assembly Speaker Sheldon Silver, D-Manhattan said this morning as he arrived to his office.

The Assembly passed the same-sex marriage legislation in June, but the Senate, with a slim 32-30 seat Democratic majority, has not voted on the measure, largely because it’s uncertain whether it would pass.

That continues to be the concern of Democrats, who are leery of bringing the bill to the floor for a vote if it would fail. Several Democratic senators have said they would not vote for the bill, requiring votes from Republicans. And no Republicans have publicly said they would vote for the measure.

Senate Majority Leader Pedro Espada, D-Bronx, said this morning as he headed into the Democratic conference meeting that the first goal is to get an agreement on the budget, called the deficit reduction plan (DRP).

“There’s a great expectation surrounding marriage equality and my personal view is that it should come up for a vote,” Espada said. “As to when? Let’s just put it this way: I think it will follow, in my view, the DRP.”

Gay-rights groups were working this morning to keep the bill alive, saying that the Senate should vote on it regardless of whether it’s uncertain if it would pass.

“To not bring this bill to the floor for a debate would be a slap in the face to every LGBT New Yorker,” said Empire State Pride Agenda executive director Alan Van Capelle. “We have waited far too long for the basic respect of a vote from our elected State Senators on an issue that affects our daily lives and the lives of our loved ones.”