By MICHAEL GORMLEY

Associated Press Writer

ALBANY -- Lawmakers and Gov. David Paterson, all trying to put a month of scandal behind them, are finding out just how hard the fiscal times are.

Closed-door negotiations to pass a state budget due by midnight tonight fell dangerously behind on Sunday. But in an effort to put talks back on track, Paterson and legislative leaders met Sunday evening and announced that they have agreement on all spending areas. The leaders said the thousands of pages of budget bills will be printed overn­ight and voted on today, potentially in time to be completed by the midnight deadline.

"It's a mechanical problem, you're always racing against the clock in budget negotiations, but this time we're racing together against the clock," Paterson said.

Asked if an on-time budget was possible, Assembly Speaker Sheldon Silver said, "Always."

Passing a difficult budget on time despite an historically tumultuous month in New York state government was seen as a prize that would draw Democrats and Republicans together for a fresh start. They sought to craft a budget that would deal with a severe economic downturn and put behind them the scandal in which Democratic Gov. Eliot Spitzer €ƒ who proposed the budget in January €ƒ resigned from office two weeks ago after he was implicated in a prostitution ring.

Paterson, a well-respected and well-liked lieutenant governor and former senator, had hoped to end the rancor of the Spitzer regime and usher in bipartisan cooperation and a more open government. A timely budget was to be the test case.

Paterson, Silver and Senate Majority Leader Joseph Bruno wouldn't release details of their agreement Sunday that was struck behind closed doors, despite their promises for a more open, transparent process.

In order for the measures to avoid the legally required "aging" of bills for three days to allow lawmakers and the public to review them, the governor will have to issue a "message of necessity." That allows even complex budget bills to be voted on shortly after they land on their desks, often while they are still warm from the printer.

"We were somewhat sympathetic because of the transition in government," said Barbara Bartoletti of the League of Women Voters. "Secrecy is not in the best interest of rank-and-file legislators or to the general public, who need to restore all kinds of faith in government and secrecy is not the way to do it."

The leaders said Sunday that spending would be $500 million less than the $124 billion budget proposal crafted by former Gov. Eliot Spitzer in February, resulting in an increase in spending of slightly less than 4.4 percent.

On Thursday night, the leaders announced a framework for a budget that would reduce spending by the same dollar amount, but they estimated then that overall spending would grow between about 4.5 percent and 4.8 percent.

Paterson, however, revealed that there would be no increase in the income tax for the New Yorkers who make $1 million a year or more. The "millionaire tax" was pushed by the Assembly's Democratic majority.

Paterson and Legislative leaders refused to confirm other agreements, even after briefing rank-and-file lawmakers, saying some details still had to be worked out Monday morning even as part of the budget bills would be printed.