A special legislative session to cut New York's current-year $1.5 billion budget deficit was canceled yesterday after a contentious meeting between Gov. David Paterson and leading lawmakers ended without agreement.

Paterson called the special session last month after new budget revenue projections pointed to a large gap opening up as the downturn in the economy pummeled Wall Street street firms on which the state is highly dependent for tax revenue. The cuts are all but certain to have to wait until January when Democrats, bolstered by this month's election, take over the Senate majority from Republicans.

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