Governor Paterson ordered the state to delay $2.1 billion in payments to schools across the state.

The payments were expected to go out Wednesday, but due to declining revenues Paterson is holding onto the checks.

He said he plans to pay schools by June 1, when he is statutorily required to make those payments. The governor also delayed payments back in December.

New York State United Teachers (NYSUT) and the New York State School Boards Association will continue to press a lawsuit filed in December over the delays.

The association's president said the governor's actions are reckless.

"We maintained our lawsuit for this particular reason, but now we see a situation where he is really trying to say to voters, to the Legislature, to people who are suing him, 'I'm going to do what I want, and if you don't like it, tough luck, sue me,'" said Tim Kremer, NYS School Boards Association.

Governor Paterson is also suspending several new state construction projects because of New York's fiscal crisis.

Officials said projects not paid for by federal economic stimulus funds will be delayed until the Legislature and governor agree on a budget.

The order also says the state will not fund any work after the start of the new fiscal year, which begins Thursday. The order exempts projects that are planned to address emergency health and safety needs.