Updated: Monday, 28 Jun 2010, 5:24 PM EDT
Published : Monday, 28 Jun 2010, 5:19 PM EDT
ALBANY, N.Y. (WIVB) - With higher taxes and fees on the table, the governor and state lawmakers engage in a new battle as the clock ticks once again toward a potential government shutdown.
There is even more tension Monday night between the governor and state lawmakers. The governor says they are creating a fantasy over closing the $9.2 billion deficit. The lawmakers, for their part, didn't accept the governor's budget bills Monday morning.
The day started off on a sour note when members of the governor's staff tried to deliver his budget bills to the Legislature.
The Democratic majorities in the Senate and Assembly refused to accept them, this time preferring to pass their own budget bills, bills the governor says will leave the state with an unbalanced budget.
Paterson said, "There is, I think, irrational spending that is not paid for."
Sunday night lawmakers disappointed the governor by failing to come up with a contingency plan should New York not receive a billion dollars in Medicaid funding from Washington.
"It's very clear that Washington's sending a signal that if it comes at all, it will be less than what we are expecting. Do you see anywhere in their budget that they address that? They just leave it," said Paterson.
The governor has threatened to veto hundreds of millions of dollars in school aid expected to be restored by lawmakers, as well as $200 million in items for individual lawmakers' districts.
Assembly Speaker Sheldon Silver said, "There's some things he can veto and we understand that."
Lawmakers plan on reinstating the four percent state sales tax on clothing and shoes under $110. That's not going over well for many consumers.
Gabrielle Mann said, "They keep tacking more and more on and more on, and when is enough, enough?"
Republicans have said they won't vote for budget bills that include tax increases.
Sen. Michael Ranzenhofer said, "The problem is that the state spends too much and we can't keep on taxing its residents and supporting insatiable spending. That's killing us."
The $136 billion budget is now almost three months overdue. Governor Paterson's threat of vetoes means the fight is not over yet. The long fight will likely have at least one more round.