ALBANY — A federal judge Wednesday temporarily blocked Gov. David A. Paterson from

furloughing 100,000 state workers next week.

U.S. District Judge Lawrence Kahn also ordered that a 4 percent pay hike for public

employees that has been delayed since April 1 should take effect immediately.

In blocking the one-day-a-week furloughs, Kahn said the workers could face "irreparable

harm" if their paychecks were cut 20 percent a week, as the governor proposed and lawmakers

approved, starting Monday and continuing until a budget is approved.

The judge's ruling means Paterson cannot count on $30 million a week in savings from the

furloughs. The governor has accused the state's public employee unions of refusing to

sacrifice despite a $9.2 billion budget deficit.

"Until we go to court, the state work force will not be making any sacrifices in the

deficit-reduction plan, and I think that's unfortunate," Paterson said after the court ruling.

"But this is a system of laws and a society of rules, and we'll go to court and try to

persuade them that our position is right."

He did not rule out resorting to layoffs if he does not succeed in court.

The judge also dealt a blow to the state's overall case by noting that the unions' lawsuits

"raise doubts as to whether a legitimate public purpose" is met by Paterson's furlough move.

"I believe it's a tremendous victory for the rule of law," said Craig Speers, an executive

board member representing the Buffalo region with the Public Employees Federation, one of the

four unions that challenged the furloughs and wage freeze.

"Contracts are entered into to be honored, and this was obviously a breach of a

collective-bargaining agreement by the State of New York, and the judge rightfully took action

against that breach," he added.

Union officials accused Paterson of breaking a four-year collective-bargaining agreement

that expires in 2011. Besides facing one day a week without pay, unionized state workers did

not get a scheduled 4 percent raise when the fiscal year began April 1; the freeze was

contained in a series of emergency appropriation bills that the Legislature has approved for

the past six weeks until a 2010 state budget is in place.

"The sad part of this entire story is the fact that he was using hardworking, middle-class

citizens who are employed by the state as political pawns in this political theater, and I

just think that's not appropriate conduct," Speers said.

The judge's ruling came after several state agencies Wednesday released furlough plans,

including entire shutdowns of departments.

At the Department of Motor Vehicles, road tests and traffic court hearings were set to be

canceled May 21 as 2,800 out of 3,000 DMV workers were being told to stay home that day.

At the tax department, a telephone help line for taxpayers was to be shut down. At the

Lottery Division, all seven of its customer service centers — where bettors claim prizes

worth more than $600 — were to close May 21.

All that has been put on hold with Kahn's ruling.

Four unions — representing employees ranging from state road crews to state

university professors — filed applications for a temporary restraining order with Kahn

on Tuesday, a day after the Legislature approved the furloughs as part of a new emergency

appropriation bill.

Lawmakers, even those who voted yes, said they had to vote for the provision or face a

governmentwide shutdown. The Legislature can only vote yes or no — it can't make changes

— to the budget-extender bills, which are needed to keep the government running without

a budget in place.

Before approving the extender bill, the Senate had passed a nonbinding resolution opposing

the furloughs — a vote Kahn noted in his ruling.

The unions alleged that the contracts clause of the U.S. Constitution was violated by the

furloughs and pay freeze.

The judge said the unions met two key legal hurdles for him to issue his order: showing

irreparable harm and presenting a case likely to succeed on the merits.

However, the judge, citing a court case several years ago in which the Buffalo Teachers

Federation lost in a wage freeze case against the city's financial control board, said there

is a "legitimate public purpose" for the government to address fiscal emergencies. Kahn

cautioned that the state can still prove its case for the need for the furloughs.

Kahn set a hearing for May 26.

Danny Donohue, president of the Civil Service Employees Association, said Paterson's plan

is "ill-advised and demonstrates action that was not in the best interest of New Yorkers."

Paterson wants $250 million in payroll savings from the unions, but he said unions have

offered only two plans: a "self-serving" idea to replace government contractors with more

unionized workers and permission for state worker insurance plans to purchase prescription

drugs from Canada, which he said is illegal.

Shortly before Kahn's ruling, a group of Assembly Democrats entered the governor's suite at

the Capitol and took over the Red Room, refusing to leave until they heard from the governor

about how to jump-start stalled budget talks.

The protest was led by about a dozen lawmakers, including Francine Delmonte, D-Lewiston,

and Dennis Gabryszak, D-Cheektowaga, and grew to nearly three dozen. It began with harsh words

against Paterson; after a meeting, the governor and lawmakers exchanged praise. The meeting,

Paterson said, "moved the ball forward considerably." He did not say how.

For weeks, Paterson has been blaming lawmakers, who are facing election, for the budget

delay, saying they have been unwilling to compromise on unpopular, though necessary, cuts to

the fiscal plan in order to close the deficit.

Earlier Wednesday, the administration announced that raises — totaling $42,000

annually — for five executive branch employees were being rescinded after union

complaints that the governor was seeking furloughs for some workers while giving raises to

others.

Lawmakers, even those who voted yes, said they said they had to vote for the provision or

face a government-wide shutdown. The Legislature can either vote yes or not - it can't make

changes - to the budget extender bills, which are needed to keep the government open during

times when there is no annual budget in place. The Senate passed a non-binding resolution,

before approving the extender bill, going on record opposing the furloughs - a vote Kahn noted

in his ruling.

Danny Donohue, president of the Civil Service Employees Association, called Paterson's

plan "ill advised and demonstrates action that was not in the best interest of New Yorkers."

Paterson wants $250 million in payroll savings from the unions, but he said unions have only

offered two plans: a "self-serving" idea to replace government contractors with more unionized

workers and permission for state worker insurance plans to purchase prescription drugs from

Canada, which he said is illegal.

Kahn set a hearing on the matter for May 26.

Shortly before Kahn's ruling, a group of Assembly Democrats entered the governor's suite at

the Capitol and took over the ornate and historic Red Room - refusing to leave until they

heard from the governor about how to jump-start stalled state budget talks.

The unusual protest, led by an initial stream of about a dozen lawmakers that grew to

nearly three dozen, including Francine Delmonte and Dennis Gabryszak of Western New York, was

begun with harsh words against Paterson. After a meeting, Paterson and lawmakers exchanged

praise.

Paterson for weeks has blamed election-bound lawmakers for the budget delay, saying they

have been unwilling to compromise on unpopular, though necessary, cuts to the fiscal plan in

order to close the deficit.

After the meeting, the rhetoric was toned down considerably. The meeting, Paterson said,

"moved the ball forward considerably." He did not say how.

Earlier in the day, the administration announced that raises - totaling $42,000 annually -

for five executive chamber employees was being rescinded in the face of union complaints that

the governor was seeking furloughs for some workers while giving raises to others.

"This is an action to put aside a distraction," Morgan Hook, a Paterson spokesman, said of

the pay decision that included raises for four press staffers. He said the press operation's

payroll has been cut $300,000 the past two months, while noting that there are more than

12,000 PEF workers making over $75,000 in line for raises of between 4 percent and 7 percent

this year.