New York GOP gubernatorial candidate Carl Paladino, with his campaign...

New York GOP gubernatorial candidate Carl Paladino, with his campaign manager Michael Caputo, center, at their campaign headquarters in Buffalo. (Oct. 14, 2010) Credit: Newsday/Alejandra Villa

BUFFALO - Michael Caputo, who has managed Carl Paladino's campaign for governor since its inception, offered his resignation twice this week in the wake of Paladino's incendiary comments about gays, campaign sources told Newsday, and each time the Buffalo Republican rejected the offer.

While Caputo stays as campaign manager, his duties will change, and he will no longer travel with Paladino. Instead, the sources said, he will run daily operations from headquarters here, and focus on shaping Paladino's daily talking points.

Paladino, who has regularly been available for media interviews, also will have more limited exposure to the media now, the sources said.

They said Caputo first offered to resign in a 2:30 a.m. e-mail Monday, just hours after Paladino's speech to Orthodox rabbis in which he said he didn't want children "to be brainwashed into thinking that homosexuality is an equally valid and successful option."

Caputo on Tuesday said it was his fault that the speech, written for Paladino by the host rabbis, wasn't properly vetted before Paladino read it aloud.

On Thursday Caputo again offered his resignation at a meeting in Paladino's law office here. Paladino again rejected it.

Caputo confirmed he had offered to resign, but declined to elaborate.

In Manhattan Friday morning, Paladino took part in a closed-door panel discussion at a Republican Governors Association breakfast. He did not speak to reporters.

South Carolina Gov. Mark Sanford said Paladino "spoke from the heart" during his 50-minute session. Paladino, Sanford said, "was just very direct and forthright and said, 'These are the problems with New York that I think ought to change.' "

Susana Martinez, the GOP gubernatorial candidate in New Mexico, shared the five-candidate panel with Paladino and said he did not talk about his campaign's recent distractions. "He was able to articulate, in the short time that we had, of course, what his hopes were and what his hopes are toward small businesses," she said.

Friday afternoon, Paladino spoke to New York University College Republicans before returning to Buffalo to prepare for Monday's Newsday/News 12 debate at Hofstra University.

Paladino's Democratic opponent, Andrew Cuomo, made no campaign appearances Friday.

On the latest episode of "Sarra Sounds Off," Newsday's Gregg Sarra and Matt Lindsay take a look top boys and girls basketball players on Long Island. Credit: Newsday

Sarra Sounds Off, Ep. 15: LI's top basketball players On the latest episode of "Sarra Sounds Off," Newsday's Gregg Sarra and Matt Lindsay take a look top boys and girls basketball players on Long Island.

On the latest episode of "Sarra Sounds Off," Newsday's Gregg Sarra and Matt Lindsay take a look top boys and girls basketball players on Long Island. Credit: Newsday

Sarra Sounds Off, Ep. 15: LI's top basketball players On the latest episode of "Sarra Sounds Off," Newsday's Gregg Sarra and Matt Lindsay take a look top boys and girls basketball players on Long Island.

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