NY Legislature agrees to budget cuts

August 20, 2008 1:43:50 PM PDT
State lawmakers have agreed to cut hundreds of millions of dollars in the current state budget, with overall spending to be slashed by nearly 2 billion dollars over the next two fiscal years. The Democrat-controlled Assembly worked well past midnight to approve most of the budget cuts sought by Governor Paterson when he called for yesterday's special session of the Legislature.

The Senate is expected to return this morning to give final legislative approval to the deal reached late last night.

An official close to the negotiations tells The Associated Press that lawmakers agreed to cut 426 million dollars from the current budget.

The official -- speaking on condition of anonymity -- says the cuts over two years will be 1.7 billion dollars.

Paterson called the special session to deal with looming deficits projected in the billions of dollars.