ALBANY — Public-employee unions yesterday ripped Gov. Paterson as the Grinch who stole the Christmas from nearly 900 state workers who are being laid off, effective Dec. 31.

The layoffs will affect all major agencies including the departments of mental health, environmental conservation, transportation and motor vehicles.

Paterson said the layoffs were necessary because union leaders refused to bargain in good faith as he sought to trim $250 million in workforce spending.

Union president Danny Donohue claimed Paterson engaged in “a cruel and unnecessary action in this holiday season that will hurt innocent families.”

Gov.-elect Andrew Cuomo backs the job reductions.