Governor David Paterson says New York is facing a deficit that could add up to $10 billion over the next two years, and fixing that means some tough decisions.

One option on the table is making mid-year budget cuts to school district aid.

The Watertown school district is facing losses of nearly $800,000 in the middle of the school year.

"A mid-year cut disrupts so many things in the school operations," says Watertown School Superintendent Terry Fralick. "It also is, I think, very critical in terms of today trying to provide the best academic programs that we can for our students."

Now some Democratic senators, including North Country Sen. Darrel Aubertine, are saying mid-year school cuts are not the way to go.

"Mid-year cuts...can have a devastating effect on fund balances that school districts have, and some school districts wouldn't be able to handle that," says Aubertine.

Republican Sen. Joe Griffo says he voted against the budget, and he says shifting the burden isn't going to solve the problem.

"The same senators who voted for this budget are now the senators who are calling for no reductions in school aid," says Griffo. "I wish they were enlightened last winter that this was a bad budget. It taxed too much. It spent too much."

Governor Paterson says cuts still have to be made somewhere.

Griffo proposes Medicaid reform and taxing cigarettes sold on Native American reservations.

Aubertine says he would look at a reduction in jobs and structuring how projects are being funded.

Aubertine says he expects to be back in Albany to vote on the proposed budget cuts Monday or Tuesday.