About 1,000 workers at the state Division of Military and Naval Affairs could have their paychecks affected by delays unless state lawmakers and Gov. Kathy Hochul extend state spending on Thursday.
Comptroller Tom DiNapoli gave lawmakers and the governor until 4 p.m. on Thursday to approve the next budget extension as a broader spending plan is yet to be finalized.
Lawmakers and Hochul have already approved three extensions to keep the state government funded since missing the April 1 deadline.
Progress has been made on key issues surrounding the state's bail laws, while Hochul and top Democrats have been at odds over housing policy.
Lawmakers on Tuesday said it was unlikely a budget deal can be reached by Thursday as key issues from charter schools to addressing energy issues remain unresolved.