In the latest episode of Albany’s failure to address a worsening state deficit, Governor David Paterson says negotiations with the Legislature are over and its quote "last, best offer" falls far short of what’s needed.
Meanwhile, legislative leaders emerging from the same closed-door negotiations say progress is being made and a final deal is near.
As some rank-and-file lawmakers claimed a breakthrough had been made in the three-month old talks, Paterson says the Legislature’s inaction was forcing him to take more extreme fiscal measures.
Paterson says he will reduce and possibly delay state aid to schools, hospitals and local government services to make sure there is enough cash for the state to pay its bills and protect its credit rating.