ALBANY – Gov. Paterson’s bold decision to listen to critics and force out scandal-shrouded chief of staff Charles O’Byrne was warmly welcomed by state government insiders last night as proof the governor was putting his near-paralyzed administration back on track.
The critics noted that Paterson, facing an imminent and unprecedented $12 billion-plus projected budget deficit, must have a highly credible and respected chief of staff in place to deal with the Legislature and manage state agencies in the coming weeks and months.
That’s a status O’Byrne squandered over the past eight days.
A week ago, O’Byrne revealed exclusively to The Post that he had failed to pay state and federal income taxes for five years because of “clinical depression.” That story, as well as his lawyer’s subsequent claim that he suffered from a previously unknown “non-filer syndrome,” had turned the once highly respected former Jesuit priest into an embarrassment and laughingstock.
O’Byrne had, after all, assured Paterson as far back as 2004 that he was in the process of paying his taxes, but revealed this week that he hadn’t finished up until Tuesday.
And he had repeatedly claimed and told the governor that he owed about $200,000, only to reveal this week that the number was nearly 50 percent higher.
“He had to go,” a source close to Paterson told The Post.
“Charles had become damaged goods with the first story, it was compounded during the week, and the governor, while reluctant to face it, obviously eventually did.”
Other Paterson administration insiders described the governor as “agonizing” over the decision to force out O’Byrne, who was not only his top aide but also a good friend.
Making matters even harder was the lack of an heir apparent.
An official close to Paterson said he understood the need to have O’Byrne resign, but said finding a replacement could be difficult.
“The scary thing about this is that O’Byrne has been the whole operation for Paterson,” the official said.
“So the question, of course, is, ‘What happens now?’ “