N.Y. Gov. Paterson Sued for Withholding Payments to Schools

New York Gov. David Paterson's order to withhold $582 million of payments from school districts was unconstitutional, plaintiffs charged in a lawsuit filed in State Supreme Court in Albany yesterday.

Paterson said he has legal grounds to withhold the funds and called the suit "a desperate attempt by special interests to put their needs above the needs of the state of New York."

Last week Paterson ordered the Division of Budget to withhold $436 million from payments to school districts under the School Tax Relief, or STAR, program and $146 million of direct aid to school districts as part of a $750 million package that also withheld funds from municipalities and insurance carriers.

A coalition comprising a teachers union and educational associations said the governor's move violated the separation of powers doctrine of the state constitution and its guarantee of "a sound, basic education."

"Once he signed the state budget in April and approved the deficit reduction plan, he is constitutionally and legally bound to follow the law," Richard Iannuzzi, president of the New York State United Teachers union, said in a press release. "The governor is overstepping his bounds. He clearly lacks any legislative, statutory or constitutional basis to withhold funds from school districts, and by doing so, he is harming children and their schools."

"I am being sued for trying to keep New York State's finances solvent," Paterson said yesterday at a press conference in Albany. "This lawsuit does nothing to solve a severe cash crisis which threatens our ability to pay our obligations at the end of the month."

The governor last week ordered the delay in payments after the Legislature approved a $2.7 billion current year deficit reduction plan that fell short of closing a projected $3.2 billion gap. The state would "potentially" pay the amounts that were delayed when funds become available, according to the governor's office. Paterson said he expected to be sued when he announced the move.

A coalition filing the suit comprises New York State United Teachers, the New York State School Boards Association, the New York State Council of School Superintendents and the School Administrators Association of New York State.

The suit also names the Division of Budget and Budget director Robert Megna and state Comptroller Thomas DiNapoli as defendants.

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New York
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