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Updated 03/30/2010 08:50 PM

Paterson delays student funding

By: Kaitlyn Ross

Governor Paterson orders the state to delay more than $2 billion in payments to schools across the state. The payments were expected to go out Wednesday, but now, because of declining revenues, Paterson is going to hold off on sending out checks. Capital Tonight's Kaitlyn Ross has details.

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NEW YORK STATE -- "This is a horrible time, a horrible thing he's doing here," said Tim Kremer, NYS School Boards Association Executive Director.

With just one day before the end of the fiscal year, Kremer says the Governor's decision to delay $2.1 billion in school payments is unconscionable.

"You can imagine the devastation it's going to have on budgets that are trying to get through the rest of the year and then planning for next year, they're already planning with a $1.4 billion cut hanging over their head," Kremer said.

This isn't the first time education advocates have gone toe to toe against the Governor over delayed payments. The School Board Association, along with NYSUT, the state's largest teachers union, filed a lawsuit against the Governor back in December when he delayed $750 million to schools. Now they say they're amending that suit to include this round of cuts, which aren't coming as a complete surprise.

"He warned that there may be a payment delay in March and we maintained our lawsuit for this particular reason. But now we see a situation where he is really trying to say to voters, to the legislature, to people who are suing him. I'm going to do what I want and if you don't like it, tough luck, sue me." Kremer said.

At least one budget expert, however, says the Governor isn't being brazen by stalling the aide payments, he's just trying to keep the state afloat.

"I think he's doing the prudent thing. And I think it also serves to conveniently get the legislature's attention and keep instilling some urgency into the process," said EJ McMahon, Empire Center For NYS Policy Director.

A painful process McMahon says isn't over yet.

"If they don't like it now, just wait a year, it will be worse," McMahon said.

To see how much funding your school district could be losing, click here.