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Paterson Warns of Additional Cuts, Provides Funds for Urban Projects

By Sarah Tanbakuchi

Niagara Falls, NY – Governor David Paterson says the ongoing fiscal crisis in New York continues to "test the mettle" of the state's elected leaders. State lawmakers are scheduled to return to Albany later this month to make additional budget cuts to eliminate a more than two billion dollar deficit.

Paterson says the state needs to balance its budget to avoid a cash-flow crisis and a lower credit rating. He admits some popular programs may be cut.

Paterson made his remarks in Niagara Falls Thursday where he announced the city would be getting a little funding help with some of its renovation projects.

He said $6 million in Restore New York funding would be awarded to two projects. The old Niagara Falls South Junior High School will be renovated into studio lofts, providing market-rate housing in one of Niagara Falls oldest neighborhood.

The remaining $1.3 million will go towards renovating the old 39th Street School into patio apartments for senior citizens.

More than $150 million of funding was made available in the first two rounds of Restore New York. Paterson says New York State has tried to put the funding towards what he called "the least economically solvent areas."

Besides the funding awarded to Niagara Falls, the rest of the $27 million earmarked for Western New York will go to projects in Dunkirk, Buffalo, Tonawanda and Jamestown.

Part of the city of Buffalo's share will go toward restoring the historic livery stable on Jersey Street that was saved from destruction last year.