ALBANY — In his most dramatic bid to force action on the long-overdue state budget, Gov. Paterson yesterday gave legislative leaders one final chance to reach a deal or face a doomsday vote on Monday.
The governor’s ultimatum came after lawmakers once again rejected key Paterson plans for closing an estimated $9.2 billion budget gap.
Paterson pledged to make lawmakers accept his package as is, if they aren’t willing to produce a better resolution by his Monday deadline. If the Legislature refuses to approve Paterson’s budget plan Monday, it would trigger a state-government shutdown.
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Lawmakers’ only alternative would be to negotiate a final budget agreement with Paterson before the deadline.
“I am willing to listen to alternative solutions to New York’s budget crisis, and will continue to listen to suggestions from the Legislature over the next 48 hours,” Paterson said.
“While the door remains open for negotiation, it will not be on Albany time, where deadlines only exist to be extended or ignored,” he continued.
The budget is nearly three months past the April 1 start of the fiscal year.
Assembly Speaker Sheldon Silver (D-Manhattan) and Senate Democratic leader John Sampson of Brooklyn rushed to Manhattan last night to huddle with Paterson for a late round of talks after the governor detailed his latest plans.
Paterson is proposing, among other items, lifting the ban on mixed martial arts, allowing supermarkets to sell wine and ending the sales-tax exemption on clothing and shoes under $110.
The governor also wants to cut in half the 50 percent deduction on charitable donations by taxpayers who earn more than $10 million a year.
As if trying to force Silver to the table, Paterson’s plan further includes at least three items the powerful speaker has fought hard to keep out of any final budget: a school- and property-tax cap, a massive cut to school aid and a proposal to allow state and city universities to set their own tuition rates.
Paterson’s latest version of the tuition plan would sunset in four years and includes increased tuition subsidies to cover some of the expected rate hikes.
The tax cap — notably softer than competing proposals, including that of Democratic gubernatorial candidate Andrew Cuomo — would limit to 4 percent any annual increase on property taxes.
The governor proposed restoring $300 million to his initial $1.5 billion cut to state education aid, reducing the expected blow to city schools by about $120 million. Silver had pushed for a restoration of $419 million.
“We are committed to sparing our schools from the most devastating cuts,” Silver said.
If the latest bill passes, the final $135 billion budget would include about $1.2 billion in new or expanded taxes, roughly what Paterson proposed in January.
It would not include a $2 billion-a-year borrowing plan proposed by Lt. Gov. Richard Ravitch and endorsed by Silver.
Highlights of Gov. Paterson’s budget plan
* End exemption on sales tax for clothes and shoes under $110
* Close the $9.2 billion deficit
* Cap property and school taxes
* Allow supermarkets to sell wine
* Legalize “Ultimate Fighting”
* Cuts to state school aid
* Let SUNY and CUNY set their own tuition rates
* Slash 50% deduction on charitable giving by very wealthy
* No borrowing