Paterson sympathetic but blunt

Scott J. Allen is convinced Gov. David A. Paterson's proposal to allow grocery stores to stock wine is going to take a big bite out of profits at his local liquor store. The Watertown man got an opportunity Sunday to ask the state's chief executive to reconsider.

"We wanted to expand the sales and create greater revenues," the governor told Mr. Allen while more than 300 residents listened at a town hall forum at the North Side Improvement League. "We did conduct the research, and we felt it would not threaten the small stores, based on the times the stores were open. If you wish, we will take another look at it."

Mr. Paterson undoubtedly knows New York can add $105 million in revenue in levying franchise and new licensing fees on grocery stores if the proposal becomes law, but said in the post-forum press conference that Mr. Allen's story had convinced him to reinvestigate the impact.

The liquor store owner wasn't the only one who might be suffering soon, the governor noted. The state has a $15.4 billion budget deficit through March 2010, he said, adding "once you get up to that $5 billion to $6 billion number, you are inflicting pain and hurting the ability of those who help others."

He directed most of the blame at past state governments, which racked up deficits even during times of great prosperity.

"We've earned a spending addiction, and that hasn't stopped during the period where Wall Street can't bail us out any more," he said.

And when Jill E. Evans asked him to address rumors about cuts in state funding for her agency, Frontier Housing, Mr. Paterson was sympathetic, but blunt.

"This is probably the question that evokes the most pain — from this source — but we will probably cut the rural preservation program in 2009-10. We just don't see any other way in order to balance the budget," he said. "If we follow the prescription for this year, the year of bad medicine, it will reduce our overall deficit to about $6.5 billion, assuming no further downturn in the economy. It's going to be a huge encumbrance. The nonprofits are hamstrung as it is, and taking resources away is as painful as anything we've been engaged in my time."

While Ms. Evans came alone, the Civil Services Employees Association brought 33 members to make sure the governor heard their concerns both inside and outside the forum. Rick Noreault, the union's political action coordinator for the central region, said the group is opposed to helping knock down the state deficit by lagging pay five days or ceding agreed-upon salary increases.

Mr. Paterson said his budget team "thought a minor reduction in salaries would overcome the other possibility — to lay off workers." But the governor said he won't try to reopen any union contracts without consent.

"Why should we in New York state even consider putting a public employee out of work?" Mr. Noreault wondered as he waited in frigid temperatures for the governor's motorcade to arrive. "If we put them out of work, they are going to be seeking the same services they used to provide."

Those on both sides of the wind turbine debate also braved the cold to bring visibility to their cause.

Beth A. White, Cape Vincent, came out for Voters for Wind. She said state government should help speed up renewable energy projects by reviving its dormant power plant siting law, know as Article X. Ms. White said wind projects should be reviewed through that process, instead of relying on local control.

Allan P. Newell, Hammond, marched for Concerned Residents of Hammond.

"I'm concerned about wind power and its efficacy. I think there's a lot of problems with it," he said. He also supported state intervention to "clean up wind" and take the law-writing out of local control.

Mr. Paterson didn't suggest a state takeover, but said "we have to be a lot more careful about the siting of wind turbine facilities" along the St. Lawrence River "because of its cultural and historic value."

The governor added: "There's a real rush for energy creation these days, but it has to be balanced with good government and the integrity of those who take part in the decision making process."

Mr. Paterson expressed great optimism in the state's clean energy workforce development program, suggesting it could create up to 1,000 jobs in Jefferson County alone.

Locally-elected state politicians soaked in the governor's words as they sat shoulder to shoulder with their constituents in the bingo hall.

Sens. Darrel J. Aubertine, D-Cape Vincent, and Joseph A. Griffo, R-Rome, came, as did Assemblywoman Dierdre K. Scozzafava, R-Gouverneur, Assemblyman William A. Barclay, R-Pulaski, and Mark A. Pacilio, chief of staff for Assemblywoman Addie J. Russell, D-Theresa.

"I'm just hoping that my colleagues who were here today go back to Albany and surprise people, get in there and really find a way to work this out and work it out as quick as possible," the governor said afterward. "It would go a long way toward re-igniting the confidence in government to go along with the enthusiasm that we could get out of this very difficult situation."

Mr. Paterson won't be returning to Albany right away. He'll be in Massena this morning to sign a contract between the New York Power Authority and Alcoa which provides low-cost hydropower to the aluminum company in exchange for keeping jobs locally