Politics Overshadows Leader's Meeting on Budget

By Karen DeWitt

Albany, New York – Governor David Paterson warned legislative leaders that the budget deficit will grow by another billion dollars. The embattled governor, who insists he'll seek election next year, also received less than total support from top Democratic legislators.

Paterson and legislative leaders from both parties met publicly for the first time in months, to try to begin closing a budget gap that the governor predicts will be even bigger than the $2.1 billion dollars already projected.

"I don't want to alarm anyone, but I think it's safe to say that we should see this as a $3 billion dollar budget deficit," said Paterson.

The leaders, both Democrats and Republicans, all pledged to work together cooperatively, though they made no specific commitments to meet in a special session.

Only Senate Republican leader Dean Skelos offered a list of options for closing the gap, including consolidating state agencies and selling off state properties.

Assembly Republican Minority Leader Brian Kolb suggested that the state collect sales tax on cigarettes sold on Indian lands.

But neither GOP leader was asked to further detail their ideas at a private leaders meeting that Governor Paterson held immediately after the public one. Only Democratic Leaders, Senate Conference Leader John Sampson and Assembly Speaker Sheldon Silver, were invited.

The leaders meeting was also the first one in which Paterson's Lieutenant Governor, Richard Ravitch participated. The state's highest court ruled that Paterson acted legally when he appointed the former MTA Chair to the post.

"I hope very much that during the next year I will be able to work closely with everyone at this table," said Ravitch, who was congratulated by all of the leaders, including Republicans, who had brought the lawsuit against the Lieutenant Governor appointment.

Ravitch, who said earlier that no area of the budget will be "immune" to cuts, agreed with the governor's prediction that the state's finances will only get worse in the coming months.

Political events of the past several days cast a long shadow at the leaders meetings. A rift has opened between Governor Paterson and the White House, over the Obama Administration's attempts to dissuade the governor from running for election next year. The incidents have raised questions about the governor's ability to lead the state through the continuing budget crisis.

Paterson answered those concerns with defiance, saying he learned, through the Lieutenant Governor's court case, not to give up.

"Regardless of what appear to be the perilous circumstances, you don't give up," said Paterson. "You keep fighting."

The governor seemed to be backing away from comments made Tuesday, which were widely perceived to be a shot at the President, when Paterson said the Obama Administration "hadn't been able to govern". The governor says he did not mean the remarks as a criticism, only a statement on the partisan gridlock in Washington. And Paterson says he isn't taking any of it personally.

"I don't know that politics should be taken to be that personal," Paterson said. "It is what it is."

Democratic legislative leaders, after their meeting with Paterson, offered qualified support for the governor's political future.

Assembly Speaker Silver at first dodged the question of whether he was behind the governor for election, saying Paterson hadn't made up his mind yet.

"I support the governor fully, he'll make his decision at the appropriate time," said Silver.

When informed by a reporter that the governor has said emphatically several times this week that he is running, Silver said, "right now I support him for governor".

"We're behind him 150% until otherwise known," Democratic Leader Sampson added.

Both leaders said they wanted to put politics aside for now, and focus on closing a gap that, combined with next year's deficit, now reaches over $7 billion dollars.

Paterson warned leaders that time is running out. He says if there's no resolution in a couple of months, New York's bond rating could be downgraded, making it more expensive to borrow money, and the state could have to delay payments to creditors.