Paterson Logic

Gov. David Paterson just held a rather confusing Red Room press conference during which he threatened to veto parts of the Legislature’s two-way agreement if they pass it, but wasn’t entirely clear on whether he will ultimately do so.

Paterson seemed to indicate that he would be willing to accept the two-way deal and its $519 million worth of additional spending if the Legislature comes up with a contingency plan to deal with the possible – and at this point it seems, likely – loss of some $1 billion worth of FMAP funds on which the state had been banking.

Paterson accused the Legislature of “not listening to the signals form Washington,” noting the US Senate just last week failed to pass legislation that included the FMAP cash.

If the Assembly and Senate don’t address the FMAP problem, Paterson threatened, he will not only veto their $519 million (about $419 million of which is education spending), but also the $193 million worth of member item funding that as reappropriated from last year.

“It’s as if they just stick their heads in the sand and ignore it,” the governor said of the Legislature’s refusal to pass his FMAP contingency plan tonight.

“If they do not find a contingency way to address Medicaid…I will veto every single appropriation – all 518 of them – and 6,800 programs that they fund for $193 million, more commonly known as member items. I will veto all of this.”

Asked later if he would only use his veto power if the Legislature doesn’t come up with an FMAP plan, but otherwise accept the additional spending if they do, Paterson replied:

“Yes. Most of the rest of it is consistent with my budget.”

He later added:

“I’m saying that without it that I’ll veto everything. I’m not going to get into the weeds here discussing what the negotiation is. I think I’ve given you a framework of what I’ll accept and what I won’t accept.”

Paterson also hinted of “other issues” he also wants the Legislature to address, including his SUNY tuition overhaul plan.

He said he isn’t thrilled with the tax on clothing and would prefer the soda tax, but the fact that he didn’t even include that is in latest extender bills (which, by the way, won’t be delivered until tomorrow) seems to indicate he knows that’s a nonstarter with the Legislature.

The governor said he will meet with Assembly Speaker Sheldon Silver and Senate Democratic Conference Leader John Sampson to keep negotiating in hopes of a three-way deal before tomorrow, but he didn’t seem all that psyched about the idea.

“I will talk to the two leaders, but I would suggest that they come to the meeting with a plan on how to address the critical priorities that I have pointed out need to be addressed at this time,” Paterson said.

“If they don’t want to address those priorities, I don’t know why we would have a meeting.”

The governor did admit that the threat of a government shutdown has been nullified by the Legislature’s end run game around him.

Paterson spokesman Morgan Hook said the administration is still looking at whether the two-way action the Legislature is poised to take is constitutional and is open to the possibility of taking legal action if necessary.