New York Daily News: Paterson, who expected the lawsuit, has argued he is on sound legal footing. He took the action after lawmakers fell $500 million short in closing a $3.2 billion current year budget gap.
Paterson has said the state would have run out of money if he didn't withhold the funds.
If revenues improve over the next few weeks, the school districts could get the money they are owed, Paterson has said.
Rewind: Dec. 13, Dec. 9
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