NY gov: deficit may have swollen to $800 mln

NEW YORK, July 9 (Reuters) - New York state may have incurred a deficit of $500 million to $800 million in the first three months of its current fiscal year, Governor David Paterson said on Thursday, vowing to get legislative leaders of both chambers to return to fix it.

New York started its new fiscal year on April 1.

The Democratic governor, who spoke to Albany reporters at a webcast news conference after a five-week impasse in the state Senate was finally broken, said the Senate's leadership battle cost counties, cities and towns thousands of jobs and $125 million to $150 million.

Local governments could not collect some taxes or issue debt because the Senate failed to enact any bills during the impasse.

The Senate Democrats on Thursday said they regained control of the upper chamber after the second of two Democrats who had defected to the Republicans on June 8 rejoined the Democrats. (Reporting by Joan Gralla; Editing by Leslie Adler)