By Heather Grossmann
DNAinfo Reporter/Producer
MANHATTAN — Gov. David Paterson was back to scolding the state legislature and warning New Yorkers of the state’s dire financial situation during an address on Wall Street Wednesday afternoon.
The state faces a deficit of nearly $4 billion, according to Comptroller Thomas DiNapoli, and after months of negotiations, the Governor finally extracted a $2.7 billion budget deficit reduction deal from the legislature last week.
But Paterson is dissatisfied with that outcome and said that he would take further action.
“I will continue to withhold payments until this economy is leveled off,” Paterson said, referring to state money due to local governments over the next few months.
“I will probably be sued for this, but I will not let New York City run out of money on my watch.”
Paterson began the speech by listing the financial problems of other states: Hawaii had to reduce its school week from five to four days and nine states have been forced to curtail paroles and let prisoners out of jail early.
He said that New York was at the precipice of similar disastrous financial problems.
"I’m not making a prediction when I stand here and tell you what the fate of our economy is, I am telling you straight out what will happen to New York and New Yorkers," Paterson said.
"And it is amazing that it didn’t happen before because we are ground zero of the economic crisis."
He said that the legislature's plan, which he approved, simply "delays the day of reckoning" and borrows from Peter to pay Paul, citing the use this quarter of next year's education stimulus money.
Paterson is hopeful that industries like information technology and renewable resources will help replace financial services as providers of capitol to the state, but in the meantime, he will seek to deny payment to municipalities.
