Gov. David Paterson is setting up a showdown with New York's Senate over how to address a $3.2 billion deficit and allow New York to pay its December bills.

Paterson is scheduled to deliver a rare midyear address to a joint meeting of the Assembly and Senate. He wants to drum up support for his proposed spending cuts. The address is at 3 p.m.

But the Democrat-led Senate continues to oppose his proposal, pitching its own plan that avoids what the conference calls painful cuts. The powerful health care lobby praised the ideas as innovative, but Paterson's budget office called them gimmickry.

Negotiations continue.

A special session is planned for Tuesday to enact any cuts and possibly consider other measures, including legalization of same-sex marriage.