New York's Senate has joined the Assembly in approving a measure to reduce the state's budget deficit by about $2.8 billion.
But officials say the actions on Wednesday still fall short of balancing the state's budget for next year by more than $3 billion.
Gov. David Paterson says he supports the Legislature's decision. But he says he'll have to reduce and delay payments for the last four months of the current fiscal year to balance next year's budget. He says he'll target school aid and funding to hospitals.
Paterson is urging schools to cut back spending now in preparation for harder times in the 2010-11 budget.
Paterson first called for lawmakers to act in a series of special sessions dating back to September.