Paterson Stands By His Plan As N.Y. Legislature OKs Emergency Budget

New York Gov. David Paterson held fast to his spending cuts and revenue proposals as the Legislature Monday evening passed a $4.61 billion emergency budget that will allow the state to continue paying its bills through April 25.

Fiscal 2011 began April 1 without an approved budget as lawmakers continue to disagree on how best to close an estimated $9.2 billion deficit. The emergency spending plan gives the state some additional time to map out a budget for the year. This is the Legislature’s third emergency spending packet since April 1.

Paterson’s $135.28 billion fiscal 2011 budget proposal includes $4.6 billion of spending reductions and new taxes on sugared beverages and cigarettes.

However, Senate and Assembly leaders believe the Democratic governor’s propsed budget cuts are too harsh and have rejected new taxes on sodas and other sugared drinks.

Paterson spokesman Morgan Hook said the governor’s office continues to have daily negotiations with legislative leaders to craft a compromise. In looking at spending reductions, lawmakers are in agreement on all but $1 billion of Paterson’s $4.6 billion of proposed cuts, according to Hook.

The governor also continues to oppose borrowing to help support ongoing ­spending.

“Over the past two months, too much of the conversation in Albany has centered on borrowing to balance our budget and satiate the desire to spend more money,” Paterson said in an open letter to state residents released on Sunday.

While there is no end in sight to the budget impasse, Travis Proulx, spokesman for Democratic Senate Majority Conference Leader John Sampson, said lawmakers will continue to work out a plan.

“Though the state is grappling with a $9 billion deficit, we’re close on a sensible fiscal plan,” Proulx said in an e-mail. “We expect to soon enact a budget which puts people back to work and includes long overdue property tax relief for overburdened families.”

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