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Paterson Delays Payments For Second Time

By Karen DeWitt


Albany, NY – Governor Paterson, who originally included the school aid money in emergency spending bills approved by the legislature, now says he is going to withhold $2.1 billion in school aid payments after all, due to severe cash flow difficulties.

Paterson says while the scheduled payment date is March 31st; he legally has until June 1st to hand over the money.

This is the second time the governor has had to delay payments due to schools or local governments.

The first was in December when he and the legislature failed to agree on a complete plan to close a deficit in the current year's budget. The money was eventually paid in January.

Now Paterson is holding back the payments because the legislature has left the capitol for a holiday recess without agreeing on a new state budget in time for the April 1st deadline.