>> WELCOME TO THIS WEEK'S EDITION OF "NEW YORK NOW."

I'M DAN CLARK.

IT WAS A BUSY WEEK IN ALBANY WHERE HEARINGS ON GOVERNOR KATHY HOCHUL'S $227 BILLION BUDGET PLAN CONTINUED, BUT THAT WAS NOT THE BIG NEWS OF THE WEEK.

THINGS BLEW UP ON WEDNESDAY OVER GOVERNOR HOCHUL'S NOMINEE FOR CHIEF JUDGE.

YOU'LL REMEMBER THAT A FEW WEEKS AGO, THE SENATE JUDICIARY COMMITTEE REJECTED THAT NOMINEE.

THAT'S HECTOR LaSALLE, THE PRESIDING JUSTICE OF ONE OF THE STATE'S FOUR APPELLATE COURTS.

WELL, THE SITUATION CHANGED LAST WEEK WHEN THE TOP REPUBLICAN ON THE JUDICIARY COMMITTEE, ANTHONY PALUMBO SUED DEMOCRATS OVER THEIR REJECTION OF LaSALLE.

HE'S ARGUING THAT EVEN THOUGH A MAJORITY OF THE JUDICIARY COMMITTEE VOTED AGAINST HIM, THE STATE CONSTITUTION STILL REQUIRES A FULL VOTE FROM THE FULL SENATE, AND THEN ON WEDNESDAY, SENATE DEMOCRATS ANNOUNCED A SURPRISE FLOOR 2 VOTE ON LaSALLE'S NOMINATION, JUST A FEW HOURS BEFORE IT HAPPENED.

HE WAS VOTED DOWN 39-20.

SENATE MAJORITY LEADER ANDREA STEWART-COUSINS SAID THEY WANTED TO END THE FIGHT BEFORE BUDGET TALKS RAMP UP.

>> WE ARE TWO WEEKS SHORTER IN TIME THAN WE WOULD NORMALLY HAVE AND WE HAVE A LOT OF WORK AHEAD OF US AND YOU KNOW, IT'S A-- IT'S REALLY A DISTRACTION AND JUST HANGING OUT THERE SO IT JUST SEEMED THIS WAS THE APPROPRIATE TIME SINCE WE REALLY DO NEED TO FOCUS ON MAKING SURE WE DO NEW YORKERS' WORK WITH OUR FULL ATTENTION.

THIS WAS THE TIME.

>> JUSTICE LaSALLE, WHO WAS IN THE SENATE GALLERY FOR THE VOTE, DIDN'T TAKE QUESTIONS AND REPUBLICANS WEREN'T BUYING THAT THIS WAS ABOUT THE BUDGET.

THEY ARGUE THAT DEMOCRATS WERE TRYING TO KILL THEIR LAWSUIT BEFORE IT MOVED FORWARD BY PUTTING THE WHOLE LaSALLE SITUATION TO BED.

AND WHILE DEMOCRATS DID NOT SAY THAT, THAT IS A POSSIBLE OUTCOME OF THE VOTE.

THAT'S UP TO THE JUDGE IN THE CASE.

BUT SENATOR PALUMBO SAID HE PLANS TO CONTINUE THE LITIGATION IF IT'S NOT THROWN OUT.

>> HOWEVER, THERE ARE EXCEPTIONS TO MOOTNESS AND PARTICULARLY THE RARE NATURE OF SUCH AN ISSUE THAT IT'S NOT LIKELY TO BE DECIDED.

IT'S NOT A COMMON SITUATION 3 IS ONE OF THOSE FACTORS, AND I WON'T GET TOO FAR INTO THE WEEDS, ABOUT YOU WE KIND OF THOUGHT SOMETHING LIKE THIS MIGHT HAPPEN ALONG THE WAY.

SO WE'RE PREPARED FOR PIT WE'RE READY TO GO FORWARD.

>> AND BY THE TIME YOU SEE THIS, THAT MIGHT HAVE CHANGED.

WE TAPE FRIDAY MORNING AND A HEARING ON THE LAWSUIT WAS SCHEDULED FOR THE AFTERNOON.

MORE ON THAT NEXT WEEK.