Paterson orders delaying 10% of school aid
(AP) - Gov. David Paterson is ordering that 10 percent of state aid payments to schools and local governments be delayed because the state is $1 billion short of its obligations due to be paid Tuesday.
Paterson blamed the Legislature for failing to address the full deficit of $3.2 billion to $4 billion in the extraordinary session he held for more than three weeks earlier this month.
The Legislature refused to cut any school aid midyear. School officials contended the midyear cut would force layoffs and hurt instruction.
Now Paterson says schools, hospitals, local governments and nonprofit groups will have to face a 10 percent cut across the board.