Paterson will cut aid to fix budget

BUFFALO, N.Y. (WIVB) - New York State's financial storm rages in Albany.

So are lawmakers any closer to deflating the ballooning budget deficit?

In about three and a half weeks the State could run out of cash to pay its bills. This "lack of cash crisis," as the Governor calls it, combined with an ever deepening budget deficit requires immediate action. But the Governor and lawmakers are still far apart.

"The leaders have told me this is as far as they're going to go. Well, it's not far enough," said Paterson.

The Governor wants lawmakers to cut an additional $400 million, and is threatening to delay state aid to localities if deeper cuts aren't made.

Paterson explained, "This is the direction that I have to go because I did not get a large enough cut from the Deficit Reduction Plan."

The Governor said school aid payments normally made around this time are being delayed because the state doesn't have the money.
In an exclusive interview with State Attorney General Andrew Cuomo, News 4 asked him about potential cuts in education and health care.

"Well, you have to make it where you're spending the money, and we're spending the money in education. We're spending the money in health care. We're spending the money in operations in the state," said Cuomo.

But those in health care say they've already been cut to the bone.

SEIU Local 1199 Vice President Bruce Popper said, "We are very, very concerned, as are our principle employers in Western New York, that any further cuts devastate the system."

Spokesman for Kaleida Health Mike Hughes commented, "Over the last three years health care, particular the health care delivery system, has been cut six times, and we're asking the state legislature to stop the seventh cut."