In Albany, Gov. Paterson's slash-happy budget proposal has squeaked by the State Senate. Democrats banded together to pass the $136.2 billion resolution despite earlier objections to its $1.4 billion in cuts to education. All 29 Republicans present (one was out sick) voted it; according to Minority Leader Dean Skelos, Paterson's spending wasn't justified and his budget didn't do enough to restructure state spending. "This is just a sham and a gimmick," he said before his vote.

Missing from the budget, according to the Times Union, were "Paterson's proposal for a tax on sugary drinks, increased cigarette taxes, tighter regulation of health insurance rates, and a long-debated proposal to allow the sale of wine in grocery stores," as well as Lt. Gov. Ravitch's suggestion that the state borrow $2 billion. One idea for generating revenue from the Senate Dems: $700 million refinancing of tobacco bonds.

Bloomberg issued a statement condemning the plan's drastic cuts yesterday, saying the budget "fails to take common-sense measures to generate revenue that could offset a devastating school aid cut and prevent 8,500 teacher layoffs in New York City." However, as the Post noted, he praised Democrats for providing aid to city senior centers, homeless shelters and health care for the poor. "All eyes will be on the Senate, and the entire Legislature, as we enter the home stretch in this crucial process," the mayor said. "The city cannot afford to be treated unfairly."

A final budget is supposed to be in by April 1st, the first day of the fiscal year, but Paterson has said he's "not optimistic at all" about meeting the deadline, especially since the Legislature has March 29-April 7 off for Easter and Passover.