The State Senate and Assembly have reportedly come up with $2.9 billion in cuts to the state budget, but the Times Union reports, Governor "Paterson, however, immediately claimed that wouldn't go far enough, and said he would move to unilaterally cut aid to localities." As in not pay social service agencies and public schools—Paterson said, "Unfortunately, the Legislature’s last best offer does not take sufficient action to restore New York State’s long-term fiscal stability."

The governor has said the deficit is $3.2 billion (and State Comptroller DiNapoli says it's even bigger). According to the Times Union, the $2.9 billion from Assembly Speaker Sheldon Silver and Senate Conference Leader John Sampson was viewed as a "breakthrough" by lawmakers who were shocked by Paterson's words. "One insider said this was the latest example of how Paterson, facing record-low poll numbers, is continuing to demonize the Legislature to boost his political fortunes.

The NY Times' editorial board weighs in on the budget talks, "What [Paterson has] been doing has been necessary, but it has not been popular or easy, and the governor has the rock-bottom poll ratings to prove it. The State Senate, on the other hand, has done little more than issue press releases."