ALBANY — Gov. Paterson trashed state lawmakers yesterday for ignoring the budget crisis as the state limped into the new year with an unprecedented $600 million deficit in its general fund.
The governor said his decision to withhold $750 million from schools and localities was the only thing that gave the state enough cash to plug the massive hole, and he threatened more aid freezes in the months ahead if lawmakers reject his proposals to rein in spending.
“We will take that action again and again if the Legislature fails to reduce our deficit enough to keep the state solvent,” Paterson said.
“The Legislature put this state in the position of being insolvent at the end of this month and needs to take responsibility for it.”
The governor’s remarks came on the heels of the latest cheerless cash report from Comptroller Thomas DiNapoli, who said the state would end December with a bare $884 million surplus, up slightly from $833 million on Wednesday.
The general fund — the state’s largest pool of cash — was projected to close out the month in the red for the first time ever.
A provision tucked into the state budget allowed the governor to plug the gap with money from other funds.
DiNapoli said both the governor and the Legislature were to blame for approving an overly optimistic $133 billion spending plan in April that taxed too much and cut too little.
“New York dropped the ball,” DiNapoli said. “The state’s New Year’s resolution must be to make better budget decisions.”
Senate Finance Chairman Carl Kruger (D-Brooklyn) said Paterson should work with the Legislature instead of using it as foil to rescue his election prospects.
“We’re going to come out leaner, stronger and more efficient,” Kruger said. “We would hope to do it with the governor, but we’ll do it in spite of him if we have to.”
Paterson cautioned that he might have to freeze aid again before the end of the state fiscal year March 31 if the treasury can’t pay some $14 billion in bills expected that month.
In three weeks, Paterson is expected to present lawmakers with a 2010-2011 budget that closes a projected budget gap of $8 billion to $9 billion.
Paterson also fired a warning shot at any lawmakers who might be contemplating the second income-tax hike in as many years as a way to avoid painful budget cuts.