Paterson Withholds State Employee Raises

New York lawmakers are not happy with Governor Paterson’s latest emergency spending bill which holds back raises for state workers. Karen DeWitt reports from Albany.

REPORTER: State workers, under terms of their contracts agreed to with Governor Paterson, were supposed to receive a 4 percent raise in their paychecks next week. But Paterson now says he's keeping it out of the next round of emergency spending bills citing a lack of money. Senate Finance Committee Vice Chair Liz Krueger says she doesn't like the idea, but says legislators have little power to change Paterson's bills and if they don't act, they risk a government shut down.

KRUEGER: If you don't pass the emergency spending bills, literally the next day government has no money or legality for moving forward.

REPORTER: Senate leader John Sampson says he's concerned that the Governor is withholding money for road and bridge repair projects and urges him to rethink his decision. He says he is also displeased that Paterson is withholding income tax refunds from tax payers for another three weeks.