Paterson: New executive compensation rules 'cost New York $1 billion"

New York Gov. David Paterson (D) made clear on Thursday he is not a fan of the White House's newly unveiled plan to restrict executive pay at firms that received federal rescue dollars.

Said the governor (as reported by the New York Observer):

"That probably cost New York $1 billion... And look, I'm not going to defend these people that run these companies. They've frittered away a lot of money in these reckless schemes. But the reality is, in the end, we've lost $1 billion dollars because of that act. And there goes that pipe dream legislators engaged in reacting to my cuts."

Hours later, however, Paterson's office issued a more refined statement that applauded the White House's work, but he ultimately stressed how tethered his state was to Wall Street's performance. He also explained the new limits could inadvertently and adversely affect New York's tax revenue this year. Again, according to the Observer:

"While I applaud reports that the Obama Administration is preparing to take steps to limit executive compensation for some of New York's highest earners, it is not good news for New York's tax revenue. I share in the populist rage over these CEOs raking in millions while their companies teeter on the brink of insolvency but for a federal bailout. They clearly have not earned their paychecks. However, the reported action also is the latest evidence that New York State can no longer rely so heavily on Wall Street. Once again, I am calling on the legislature to work with me to close our current budget gap and get New York back on sound fiscal footing."

Of course, Paterson is not the only prominent lawmaker to question the Treasury Department's new guidelines, which target seven companies that received the most federal aid. A number of Republicans have expressed concern since the White House announced its plans that Democrats would extend their new rules to cover even those firms that did not receive bailout money.