ALBANY — Gov. Paterson said yesterday he expects to repay his $750 million IOU to schools and local governments next month when tax money rolls in for the state.

“When the revenues return in January, we will restore the payments to those entities,” Paterson said. “It is our best assessment that the revenues will be there in January.”

He warned, however, that state finances could take another dive.

The governor said he needed to withhold the aid from schools and local governments, including $127 million for New York City, to keep the state treasury from running dry.