Metro

The late state of New York

Gov. Paterson and legislative leaders are likely to set a record for government dysfunction this month with the latest budget in state history, insiders told The Post yesterday.

“It’s not looking good for a budget agreement this week,” said a source close to the governor and the legislative leaders.

“They all have a different version of reality, whether it’s Paterson, [Senate Democratic leader John] Sampson or [Assembly Speaker Sheldon] Silver,” the source continued.

Legislative insiders said Silver was blaming Sampson for being unable to deliver his thin Democratic majority, while Sampson was blaming the governor for being inflexible and failing to appreciate the political difficulties he faces.

Paterson was said to be citing both legislative leaders as “deserving the blame for the entire budget mess, since they’re the ones who haven’t been able to finish the job,” according to a source close to the Paterson administration.

The latest budget ever was approved on Aug. 11 in 2004, and if an agreement isn’t reached on the one remaining budget bill this week, the likelihood is that a dismal new record for tardiness will be set, insiders here agree.

Adoption of the state budget is being held up by disagreements over capping local government and school property taxes and giving the State University the right to raise tuition at certain large campuses — favored by Paterson and Sampson but not Silver.

Legislators are also at odds over the establishment of a contingency program for budget cuts if hoped-for “Fmap” federal Medicaid supplemental funds aren’t received.

Of the three outstanding issues, the insiders said only the Fmap program would likely be approved this week.

Also undecided is the fate of tens of millions of dollars in pork-barrel “member item” grants vetoed by Paterson, which nervous lawmakers, fearful of voter anger in the November elections, are hoping will be restored once a final budget deal is reached.

“The truth is the situation is a tremendous mess,” said the source, who has firsthand knowledge of the situation.

“Nobody trusts anybody, nobody respects the Senate leaders, and people in the Legislature don’t feel they can take the governor at his word. Not exactly the best way to run a government.”

The lack of a completed budget, which was legally due April 1, has meant that all 212 members of the Legislature haven’t been paid since then — making for increasingly bitter feelings among lawmakers.

If the Aug. 11 late-budget record is broken, “it’s anybody’s guess. It could be months,” before the budget is finalized and the lawmakers finally get paid, said the source.

Meanwhile, Attorney General and front-running gubernatorial contender Andrew Cuomo has been working behind the scenes to encourage fellow Democrats to cut spending and approve a property-tax cap, although his influence does not appear to be great.

“Andrew is . . . not the governor, so his impact isn’t major” was how one legislative aide familiar with Cuomo’s actions put it.

fredric.dicker@nypost.com