NY governor includes budget cuts in funding bill

New York Gov. David Paterson has releasedshort-term funding legislation that cuts $775 million from statehealth care programs for the year, forcing legislators next week toeither accept cuts or risk shutting down government altogether.

The budget for the fiscal year is two months late as lawmakersgrapple with a deficit estimated at more than $9 billion.Legislative leaders say they've agreed to about $6 billion inproposed savings. Paterson says they need to cut $2.5 billion more.

The bill introduced yesterday differs from previous one-weekfunding extensions. Those contained only required payments forthings such as Medicaid, payroll and school aid and delayed mostother spending. The new measure will start cutting program budgetsrather than delays.

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