NISKAYUNA, N.Y. -- Unfunded mandates are a major reason for high property taxes in New York. The state passes a law, and the cost to implement that law is then passed onto local governments. On Monday, Governor Paterson said that process ends now.

"This issue is driving me crazy," he said.

Using the backdrop of Michael and Joan Pritchard's Niskayuna home, the governor announced his latest executive order -- mandate relief for local governments.

"We will now have a pay -as-you-go philosophy in Albany," said Paterson. "You pass a bill and it costs us money, you also have to show how we'll pay for it. If not, we cannot do it at this time."

Before a bill is passed, Paterson said the impact and cost benefits to counties must first be identified, local officials consulted, and the impact on property taxes assessed. Local government officials say it's long overdue.

Cohoes Mayor John McDonald said, "When mandates come out of the blue, usually after the fact, we weren't even aware of what was going on and then we're forced to try and pay for these mandates."

Albany County Executive Mike Breslin said, "It's driving people out of here, so I salute the governor for making this huge step forward."

Joan Pritchard of Niskayuna said, "We have seen some of our family have to move to find a better quality of life in other states."

Each year, it becomes more and more expensive for the Pritchards to live here. Their bill this year was $6,000. And while the governor's order may not cut their costs down right now, they say every little bit helps.

"I think that if we can cut back the waste, I think that it's going to translate to a stronger New York because people are going to want to stay here," said Pritchard.

But Republicans say the governor's mandate relief announcement is counter to what his budget actually does. They say by passing measures like the Rockefeller Drug Law reforms, which pushes more costs down to counties, and by eliminating programs such as the STAR rebate checks, New Yorkers are hurting now more than ever. The governor contends the old system was flawed, promising this plan will help make New York affordable again.

He said, "We cancelled the property tax rebate, which we don't think should have been there in the first place, because it fools people into thinking the government is helping them when the government is the reason they have the problems. What we're saying now is we want a real formula to cap the cost of property taxes or to find a way to bring relief."

The governor said he will not sign any legislation into law that does not meet his new standards and said he will continue to work with the Legislature throughout this session to push more property tax relief measures.