Paterson, New York Legislators Could Not Agree How To Solve Budget Deficit

November 19, 2008 6:06 a.m. EST

Albany, NY (AHN) - New York Gov. David Paterson and state legislators failed to agree Tuesday on how to close the $2 billion budget gap. In view of the deadlock, the governor deferred action on the matter for one month.

The emergency session failed to produce a result because the legislators rejected Paterson's proposals, but did not present any of their own. With the impasse, New York state may be unable to pay some of its bills towards the close of the fiscal year, Paterson warned.

Paterson wanted to fund the deficit by cutting financing from various New York agencies and programs, particularly public schools and hospitals. The governor also suggested hiking some state fees and tuition at New York universities.

Political difference is the reason behind the lack of support by legislators on Paterson's recommendations. Republicans are sore at Paterson for aggressively campaigning for Democrats in the election which caused the Democrats to gain more seats sufficient to take control of the state Senate for the first time in almost 50 years.

With a $12.5 billion budget gap looming over the state for the next fiscal year with the downturn of Wall Street companies and the apparent lack of support from lawmakers, Paterson was expected to go to Washington on Wednesday to lobby congressional leaders to include financial assistance to states under a planned second stimulus package.