NY state agencies are distributing memos about the possibility of a government shutdown as the Legislature continues to attempt to hammer out a budget agreement, which is two months late. For instance, the state Department of Transportation will "Maintain only the most critical public safety services," like responding to "severe highway incidents" (downed tree, protruding guiderail, etc) or "Critical damage to transportation infrastructure" (severe bridge damage).

The NY State Budget Director Robert Megna told reporters last Friday that he believed the Senate would be able to pass the latest "budget extender" bill, which includes big cuts—$176 million from human services and $151 million from mental health and hygiene. Now the Daily News reports that Governor Paterson is "wavering" on $1.4 billion in education cuts, "a gamechanger that many believe could lead to a government shutdown." He said, "I'm not committing to it, but I'm not taking it off the table... I'm trying to seek input from the Legislature, and I'm trying not to threaten anybody."

The education cuts are one of the most controversial parts of the budget. In the meantime, other Albany budget maneuvering may involve borrowing—the NY Times explained yesterday, "Gov. David A. Paterson and legislative leaders have tentatively agreed to allow the state and municipalities to borrow nearly $6 billion to help them make their required annual payments to the state pension fund. And, in classic budgetary sleight-of-hand, they will borrow the money to make the payments to the pension fund — from the same pension fund."