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After conducting a morning conference call with State Comptroller Thomas DiNapoli, Paterson said Saturday that all of his proposed cuts, including more than $1 billion from school aid and health care, are essential to close the $3.2 billion budget gap.

State lawmakers are proposing a less drastic reduction plan which only cuts about $100 million from health care funding.

Paterson accused legislators of dragging their feet for political reasons.

"When you look at the avoidant behavior and almost denial that many of the legislators seem to be in, you recognize that they have let their political issues usurp doing what's right for the people of New York," said the governor.

For weeks, Paterson urged lawmakers to adopt his budget reduction plan.

Paterson said without immediate action the state will run out of cash by year's end. The governor said such a situation would lead to delayed payments to pension plans, school districts and deeper cuts to education and health care. State workers would also be at risk of being laid off or furloughed.

Senate Republican leader Dean Skelos, meanwhile, says the governor is part of the problem.

In a statement, he said, "We have yet to even get a bill from the Governor. If he was serious, he would have sent us something to act on, like we requested last week. We have had a real plan on the table that the Senate Democrats have embraced. The Governor must be referring to the Assembly Democrats who have yet to propose any plan to close the deficit."

The governor met with State Senate Democratic Leader John Sampson on Saturday and was scheduled to meet with Assembly Speaker Sheldon Silver on Sunday.

The state Legislature is scheduled to meet again on Monday.