Paterson to suspend union raises

ALBANY -- Gov. David Paterson confirms that he won't include scheduled 4-percent raises for unionized public employees in a new emergency spending bill.

The emergency spending would take effect next week if the Legislature and governor have no agreement on a budget, which has been overdue since April 1.

Paterson had included $250 million in union concessions in his proposed 2010-11 budget, but so far has secured none.

Union leaders have rejected Paterson's requests for concessions to save the state money, although some rank-and-file union members have backed concessions to help the state as it faces a $9.2 billion deficit in the continuing fiscal crisis. 

The Public Employees Federation union said withholding the raises is a violation of their contract, and that the union will hold the state accountable if the governor chooses to break the contract. 

"I met with the governor yesterday to discuss the financial problems the state is facing and we agreed to have further discussions," PEF president Kenneth Brynien said in a statement Thursday. "We reminded the governor of PEF's solutions to help close the state budget, including the millions in savings to be realized by replacing high-cost consultants with lower-cost state employees." 

Paterson says he's shocked and amazed that every time he asks Albany's special interests or unions to help in the state's fiscal crisis they refuse or threaten to sue the state.

The raises could be restored in an adopted budget or in subsequent emergency spending.