ALBANY - Assembly Republican leader James Tedisco accused Democratic Gov. Eliot Spitzer Wednesday of rescinding $100,000 in critical state funds for a free health clinic in Tedisco's district because the Republican criticized Spitzer.

“This is truly governance by vengeance,” Tedisco said in a press conference.

Wrong, said Spitzer officials in their latest battle with Republicans. Spitzer officials said they told Tedisco earlier this year that his district wouldn't receive additional funding for new projects and the Republican had an opportunity to designate money for the cause if he wanted to.

“There was no effort to retaliate against Mr. Tedisco,” said Spitzer spokeswoman Christine Anderson.

At issue is a Tedisco “member item,” also known as pork-barrel spending, for the Volunteer Physician's Project of Schenectady Inc.

Tedisco said he believes the funding was cut because of his criticism of Spitzer's plan to make it easier for illegal immigrants to receive drivers' licenses.

Tedisco told reporters Osama bin Laden would celebrate at news of Spitzer's plan

Jeffrey Gordon, Spitzer's budget spokesman, said the Assembly minority received $5 million for the 2007-2008 fiscal year and Tedisco had full discretion on how to distribute some of it.

But Gordon said Tedisco chose not to include the health clinic.

“That's not true,” Tedisco spokesman Bill Sherman said. At the time the budget was introduced, the clinic was confident they would receive the funding in the final budget, he said.

Tedisco released copies of e-mails Wednesday between his office and the state Budget Office that indicate the agency was processing the request as recently as last month.

But budget officials said the e-mails only reflect only that the funding was requested, but not approved.