Governor Paterson was saying "I told you so" yesterday when discussing NY State's finances. After grim news that there was a shortfall in the state's general fund, Paterson said that there was a $600 million shortfall in that fund (you know, the one used to pay for state operations, etc.) but there was $883 million available, "I want to be sure everybody in the state understands we are not running out of money," adding, "I will not let the state run out of money as long as I can stand on two feet. What we have been trying to point out since we introduced the deficit reduction plan in September is the fact that our state is spending beyond its means."

The Post says this is the first time the general fund has ever closed out the year in the red. Paterson has repeated criticized the Legislature for not passing more aggressive cuts and used the state's financial problems to justify withholding $750 million in payments to municipalities and schools districts, "The types of choices that I’ve had to make are the toughest choices I’ve had to make in my life. Who wants to delay payments to school districts? Certainly not me."

State Comptroller Thomas DiNapoli said, "New York dropped the ball. The state's New Year's resolution must be to make better budget decisions."