Lawmakers sidestep budget deficit at Paterson session

ALBANY - Despite the urging of Gov. David A. Paterson and Governor-elect Andrew Cuomo, the State Senate adjourned last night without closing this year's $315-million budget deficit and the Assembly was expected to do the same.

Paterson had ordered lawmakers to return to the Capitol Monday in hopes of action on the deficit and other key issues. But some rank and file members said they preferred to wait until January when Cuomo is governor.

The Senate also didn't take up a bill to bail out the New York City Off-Track Betting Corp., meaning its 700 to 800 employees will now receive pink slips Tuesday and betting parlors will close next month. The Assembly was expected to back the plan.

Paterson threw in the towel an hour before the one-day special session was to begin. He said he wasn't sure he would call another session before leaving office on Dec. 31.

"The special session I called as much to clear my conscience as anything else," Paterson said. The lawmakers "are hesitant, as always, to make deficit reductions . . . They are just creating a bigger ditch to get out of [next year]."

He had proposed a 1.6 percent cut in spending across the board or $250 million. That includes $130 million from school aid. He also hoped to reduce Medicaid by $55 million.

Paterson estimated inaction on the 2010-11 deficit and NYC OTB would add $1 billion to next year's $9 billion budget gap. A Cuomo spokesman declined to comment last night.

Sen. John Sampson, leader of the Democratic majority, blamed Paterson for not providing a deficit reduction bill until Monday afternoon - a contention the governor disputed. "You really need the actual bills so you can deal with it," said Sampson of Brooklyn.

Minority Leader Dean Skelos (R-Rockville Centre) criticized Senate Democrats, saying Republicans "were ready to act today to cut spending but we were excluded from negotiations." However, he said he opposed the OTB bailout, alleging it would undermine OTBs in the suburbs and potentially increase property taxes.

Asked about the budget deficit, Assembly Speaker Sheldon Silver (D-Manhattan) noted the fiscal year doesn't end until March 31. "I think we can deal with it in that context if we cannot deal with it today," he said.

While the marquee issues on Paterson's agenda were bypassed, the Senate confirmed eight judges and established a commission to increase judicial salaries.

As of 11:15 p.m., the Assembly had voted on one bill.

Separately Monday, three legislative conferences selected leaders.

Sampson was re-elected head of Senate Democrats, a post he has held since last year.

Skelos was re-elected chief of Senate Republicans, the position he has held since mid-2008.

Assembly Democrats once again named Silver their leader and will nominate him to be speaker, the job he has held since 1994.

The duo have a tense relationship. Skelos has criticized Silver publicly while Silver mispronounces Skelos' name.

Asked if they could work together, Skelos said, "There's no animosity on my part. If he has animosity, he can sit down with me and discuss it. If he needs to seek professional help to get it out of his system, he should do it."