From Yahoo! News:

New York lawmakers and Governor David Paterson said they continue to negotiate a plan to narrow a $10 billion budget deficit over the next 17 months and solve a December cash squeeze.

Paterson, a Democrat who called legislators to Albany for special sessions last week and yesterday, told the Associated Press he will hold them in the state capital until there’s an agreement or they vote down the proposal he made a month ago. He said a vote on the budget-reduction plan isn’t likely today.

Paterson’s plan for midyear spending cuts to education and Medicaid spending, the two largest parts of the state’s $133.2 billion budget, have been stumbling blocks since he made his proposal on Oct. 15. Senate Democrats have sought to replace spending cuts with other one-time revenue, including $500 million from a restructuring of the state’s $3.59 billion of tobacco bonds.

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