Gov. David Paterson, who threatened to call the Legislature – especially the Assembly – back to Albany this fall in hopes of getting a deal on a property tax cap, said this morning both houses must return earlier than expected if lawmakers want the state to benefit from the $26 billion aid bill passed this week in Washington, D.C.

New York needs to submit a plan detailing how the education and Medicaid money it expects to receive will be spent within 30 days, Paterson told WOR’s John Gambling. Given the upcoming elections and the fact that the Jewish holidays come early this year, there are a limited number of days open for legislators to come back to the Capitol.

“The Legislature has to come back before Sept. 9….before Labor Day,” the governor said. “They won’t be happy, They won’t be happy but if you want to use that money. That’s your job.”

The Senate has already been talking about a return to Albany next Tuesday or Wednesday to address this issue.

Paterson said it’s yet unclear exactly how much cash the state will receive from the bill, which was immediately signed into law by President Obama in the wake of its passage during a quickie mid-August break session by the House.

The measure is being touted by Democrats, who say it will help prevent the layoffs of some 300,000 teachers and other public employees nationwide. Republicans are using the measure as an election-year cudgel, holding it up as proof the Democrats for being “addicted” to spending.

The governor said it appears the state will receive 75 percent of the funding it was expected in the current budget (I’ve seen estimates of anywhere from $1.4 billion to $2 billion). The administration will make up the difference by following cuts laid out in the FMAP contingency plan passed by the Legislature before it departed Albany last week, which will leave between $700 million and $800 million on hand in case the budget falls out of balance.

Paterson estimated next year’s deficit will be between $8 billion and $9 billion.

Share|