As Gov. Paterson yesterday put a new round of more than $300 million in budget cuts on the table, he and legislative leaders played a high-stakes game of chicken over a possible government shutdown early this week.

Paterson disclosed details of a one-week budget measure that would slash $327 million from human-services and mental-health spending.

In response, Senate Republicans privately indicated they would provide enough “yes” votes Monday to avert a shutdown.

“No one wants to be blamed for closing state government,” said a senior GOP staffer.

Paterson, grappling with a $9.2 billion deficit and lawmakers who fear for their re-election, has been funding state government with weekly budget extenders since failing to win passage of a state budget on April 1.

The battle turned brutal in recent days as two renegade Bronx Democratic senators, Pedro Espada Jr. and Ruben Diaz Sr., threatened to shut down state government by voting against the next budget extender.

The governor and the legislative leaders, meanwhile, announced an agreement on a budget scheme allowing the state and many local governments — but not New York City — to “borrow” nearly $6 billion over the next three years from the state pension system in order to use the funds to make required annual contributions back to the pension fund.

Some were describing the move as a classic Albany budget gimmick reminiscent of the state’s 1990 “sale” of the Attica prison to itself in order to raise $200 million.

(Source: NY Post)