Gov. David Paterson presented the State Legislature with an interesting choice when he laid out $1 billion in proposed spending cuts last week. One of the easier cuts to make -- politically -- is $200 million for legislators' grants to groups and institutions in their districts. The $200 million in pork projects is allocated among Assembly members, state senators and the governor.

Unlike, say, the hospitals and nursing homes that depend on Medicaid, the usually small organizations that receive legislative grants often don't have statewide lobbying arms. That's why they're an easier political target for the budget axe. Cutting growth in Medicaid by $506 million was the single biggest budget reduction Paterson suggested last week, and predictably, the Greater New York Hospital Association (GNYHA) and the state's largest health workers union, SEIU 1199, cried foul. They are waging a significant public campaign against the cuts.

Newsday's James Madore is reporting that legislative grants are a focus of talks by Senate Republicans and Assembly Democrats. And Liz Benjamin at The Daily Politics blog agrees that there is bipartisan support for pork cutting.

Meanwhile, state leaders continue to work on a compromise to reduce the current budget by $1.2 billion -- or about 1 percent of the $122 billion overall budget -- in time for a special session of the legislature tomorrow. We'll post updates as they happen. Stay tuned.

Following an unprecedented address to TV audiences last week, Gov. David Paterson barely had time to remove his lapel microphone before Assembly Speaker Sheldon Silver was on the radio, questioning whether the state budget is actually in crisis. Silver said, "Let's sit around for a few more weeks and analyze a little more data before we act precipitously."

Since then, the question Paterson had hoped to place front and center -- what to cut and by how much -- has morphed into a debate over how bad the emergency really is. A story today in the New York Times says governors have hit the crisis button frequently in the past. Other stories, including Newsday's, say that Silver and others are taking a cautious approach before wielding the axe.

Can't get enough news on pension padding, double-dipping and other public workforce issues? The right-leaning Empire Center for New York State Policy has launched a new blog, NY Public Payroll Watch.

Empire Center Director E.J. McMahon says the site will shine a stronger spotlight on an area with important financial and managerial implications for government. The blog is being written by Lise Bang-Jensen, a senior policy analyst with the center and the former co-host of the public affairs television show Inside Albany.

Word is that Gov. David Paterson is planning a summit meeting of state agency chiefs tomorrow, to read them the riot act on saving money. In April, after the budget passed, Paterson called on each agency to submit a detailed plan on how they would cut spending by 3.35 percent. The plans were due Friday.

Now there's a question on whether Paterson will be able to attend. He was taken to the hospital this morning with migraine-like symptoms. Preliminary tests were normal, but he will have more tests later today.

The prospect of calling on New York's agency heads to cut costs and freeze hiring could give anyone a headache.

Update: The governor has been diagnosed with acute glaucoma in his left eye and is undergoing an outpatient laser procedure to relieve pressure on the eye. He is at Mount Sinai Medical Center, and the governor's spokeswoman says the operation is not expected to have any long-term impact on his health.

Long Island's per-pupil spending is rising slower than the rest of New York's, according to a new study from the Empire Center for New York State Policy. But that may be because Long Island started with a higher base to begin with.

The right-of-center Empire Center is arguing in favor of a property tax cap and believes the fast-rising school spending supports its cause. The analysis includes a district-by-district breakdown.

Average per-pupil spending projected for the coming school year statewide is $18,768, an increase of 5.8%. Nassau County's budget is $22,975 per student (up 5.4%) and Suffolk County will spend $20,816 for every student next year, a 5.3% growth.