Paterson repeats vow to begin layoffs before Jan. 1

ALBANY - Gov. David A. Paterson Thursday repeated his vow to begin laying off state workers before Jan. 1, setting up another showdown with powerful unions.

The Civil Service Employees Association, Public Employees Federation and others representing the state workforce "have left us no choice . . . we will lay off workers before the end of the year," Paterson said in Manhattan. "We're going to have to because our early retirement incentive is not adding up to the $250 million" in savings included in this year's $136-billion budget.

Paterson and his aides did not provide details.

But a spokeswoman for Paterson's budget office said the cuts would likely impact some of the 130,884 at state agencies under gubernatorial control. Excluded groups include SUNY, CUNY, the legislature, courts, state insurance fund and the comptroller's office, she said.

More than 3,600 employees had filed papers to retire early as of Sept. 11, three days before the deadline, according to the comptroller's office. Budget spokeswoman Jessica Bassett said it would be several days before the total number of early retirements is known, though it's expected to be between 3,000 and 6,000.

She also echoed Paterson's comment that layoffs would not be necessary if the unions had agreed to a furlough plan in which workers stay home one day per week without pay for two months. In May, CSEA, PEF and others persuaded a federal judge to block the furloughs.

CSEA president Danny Donohue signaled Thursday that another legal fight was in the offing should Paterson move forward with job cuts prior to Jan. 1. "CSEA has a signed agreement with the Paterson administration prohibiting layoffs for the duration of his administration - it's binding and we will hold him to it," Donohue said.

Last year, Paterson took a "no layoffs pledge" with CSEA and PEF in return for their support of early retirements and less generous pension benefits for new hires. However, he announced in July he couldn't keep the promise because of rising budget deficits.

Separately Thursday, Comptroller Thomas DiNapoli said New York could again run out of money. He said the General Fund, used to pay bills, has been in the red since Sept. 3. "If the few positive [economic] signs start to slow," said DiNapoli, "we . . . could face a budget gap this year."