Paterson spending bills set stage for Albany showdown

ALBANY - Setting the stage for a showdown with lawmakers next week, Gov. David A. Paterson has included a property tax cap, $300 million less in school aid cuts, and wine sales by grocery stores in the emergency spending bills required to keep state government running.

The bills, released Friday night, are meant to complete this year's $136-billion budget by closing the $9.2-billion deficit. However, some of the proposals, particularly hefty increases in SUNY and CUNY tuition and suspending the tax exemption on clothing and shoe purchases below $110, are sure to anger members of the State Senate and Assembly.

Paterson also wants to cap yearly hikes in property taxes from all local governments at 4 percent or 120 percent of inflation, whichever is lower. A tax cap has twice passed the Senate but gone nowhere in the Assembly.

Similarly, the Assembly balked at Paterson's earlier proposal to allow SUNY and CUNY campuses greater latitude in setting tuition rates. In the emergency bills, the governor outlined a three-year plan, starting 2011-12, where colleges granting doctoral degrees could raise tuition by up to 8 percent per year, and other campuses, 5 percent. There also would be an expansion of the Tuition Assistance Program, though limited to half of the highest rate of tuition increase.

Paterson and leaders of the legislature's Democratic majorities vowed to continue budget talks over the weekend in hopes of replacing the emergency bills with a final agreement before Monday's vote. If the measures don't pass both houses by midnight Monday, state offices would begin closing Tuesday for the first time in modern history.

The impact would be limited, however, because 70 percent of the budget has been adopted through earlier emergency bills and a couple of budget bills. The state comptroller estimated only 2,500 employees from 261,000 would not get paid and therefore would not show up for work. And Paterson's budget office said essential workers such as prison guards, mental health personnel and state troopers would not be affected by a shutdown.

"While the door remains open for negotiation, it will not be on Albany time, where deadlines only exist to be extended or ignored," Paterson said Friday. In the absence of a final deal with lawmakers, the emergency bills would be put to an up-or-down vote Monday, he added.

Response from the legislative chiefs to the emergency measures was muted.

Assembly Democrats "are committed to sparing our schools from the most devastating cuts, ensuring that our higher education system remains accessible to all New Yorkers, and providing much-needed property tax relief," said Speaker Sheldon Silver (D-Manhattan). "We are also committed to acting responsibly to complete this process and to continue the operations of government."

Austin Shafran, a spokesman for Senate Democrats, said they would "continue negotiations, meet our obligation and pass a fair budget by Monday."

Silver and Senate leader John Sampson (D-Brooklyn) both confirmed Friday morning they had agreed to restore $435 million of Paterson's proposed $1.5-billion reduction in school aid. They said school districts would be encouraged, but not required, to use the additional aid to reduce next year's property tax levy.

Paterson and the leaders met privately for more than an hour in Manhattan Friday night. Afterward, Sampson said, "The governor is serious about getting this thing done and we are very serious also." The budget is now 87 days late.