Cuomo made his most explicit threats to the state legislature to date, saying he's going to do "whatever it takes" to implement the budget cuts that he promised during his campaign. Cuomo says if he has to, he'll use a "new option", first employed by former Governor David Paterson during last year's budget battle. Cuomo says he'll place all of his budget plans in a spending extender, if the deadline is missed, then dare lawmakers to accept the budget or shutter the government.

"If they really disagree, they shut down the government," said Cuomo.

The governor, who said less than a week ago that the budget agreement could perhaps even come early, backed away from the goal of an on time budget, saying that his priority now is having a "good budget".

Sticking points with the Senate and Assembly remain, including school funding and proposed prison closures.