Paterson wavers on threat of huge school aid cuts

ALBANY - Gov. David A. Paterson on Tuesday wavered on his threat to force lawmakers next week to accept big spending cuts to school aid and colleges or shut down state government.

"I'm trying to get [legislative houses] to make an agreement because I wasn't going to dump billions of dollars in cuts into [emergency spending bills] . . . which I think would be trying to gouge the legislature or be abusive," Paterson said. "I would much prefer for them to come to an agreement rather than for me to force a confrontation."

Seeking to jump-start state budget negotiations, Paterson said last week he planned to include more than $1 billion in cuts to public schools and $143 million to SUNY and CUNY in Monday's emergency bills. They likely would be defeated and government would close for the first time in modern history, according to experts.

Paterson said he would decide what to put in the bills, besides money to keep state offices open for another week, after today's meeting with legislative leaders.

Meanwhile, the governor said Tuesday he would submit budget bills for spending on economic development, public safety and transportation. He declined to reveal details but asked that the measures be approved by week's end.

Leaders of the legislature's Democratic majorities confirmed the bills resulted from agreements with Paterson.

In his budget plan released Jan. 19, Paterson called for replacing the Empire Zones business development program with an Excelsior Jobs Program focused on new industries and small businesses. He also suggested closing four prisons and eliminating a requirement motorists replace license plates.

Paterson and the leaders Tuesday identified the remaining hurdles to a completed budget are school aid cuts, property tax relief, more autonomy for SUNY and CUNY, and whether to employ tax hikes and borrowing to close the $9.2-billion deficit.

The two houses have tentatively agreed to restore $419 million of Paterson's education aid cuts, according to legislative sources. School districts with reserve funds would be required to use the additional aid to reduce next year's school property taxes while poor districts hopefully could avoid job cuts, the sources said.

Paterson and State Senate Democrats also want the Assembly to embrace a plan allowing SUNY and CUNY to set tuition rates. However, Assembly Speaker Sheldon Silver (D-Manhattan) said the proposal shouldn't be part of budget talks.

Both Silver and Senate chief John Sampson (D-Brooklyn) were optimistic the budget will be finished before another batch of emergency spending bills are voted on Monday. The budget, estimated to total $136 billion, is now 77 days late.

Paterson said, "We have to make some tough decisions and that means [spending] reductions and that's been the problem."