New York Democrats to gain control of state senate

By Joan Gralla

NEW YORK (Reuters) - New York state Democratic Sen. Malcolm Smith has won the support of three dissidents who flirted with backing the Republicans, giving the Democrats control of the state Senate for the first time since 1965, an Albany-based spokesman for Smith said on Thursday.

This means Democrats now control all state-wide offices, which could help Gov David Paterson finally get his spending reductions enacted.

The lame duck Senate Republicans last month derailed $2 billion of cuts Paterson proposed to jumpstart the process of shutting a $15 billion, 15-month deficit.

"We've been saying for months that Senator Smith and the Democratic conference want to find ways to reduce wasteful spending and reduce the budget gap," another Smith official said.

Assembly Democrats have been much more open to cutting spending then the Senate Republicans though they also have pushed to raise income taxes on millionaires.

Smith, who represents New York City, will formally be elected to his new position in January, when the new Democrats who won a slim majority of two seats in the 62-seat chamber in the November elections will be sworn in.

"The Gang of 3 has signed on with Smith," the Albany based spokesman said. The three dissidents, who had sought greater sway for Hispanics, among other issues, met on Thursday with Smith.

"The meeting held today resolved rules changes proposed by Senator Smith which will result in Senate reform and the election of Malcolm Smith as Leader," Smith said in a statement. A spokesman declined comment on what reforms the dissidents won, which will be taken up by the Democratic senators when they reconvene.

Sen. Dean Skelos, the Long Island Republican who replaced long-time Sen. Majority Leader Joseph Bruno after he retired this year, in a statement said: "Our conference will continue to stand up to protect taxpayers across the state and when we have differences of opinion with others in state government, we will express them strongly and propose alternatives."

The wooing of the dissident Democratic senators got an assist from a billionaire New York businessman Thomas Golisano, a former gubernatorial candidate who backed reform candidates in November, and Democratic Congressman Gregory Meeks, who both joined part of the meeting.

(Reporting by Joan Gralla and Elizabeth Flood Morrow in Albany)