After 31 days, the State Senate returned to work overnight, passing more than 100 bills, including a measure that allows the city to increase the sales tax.

Lawmakers passed the measure, 43-19, in the middle of the night.

Mayor Michael Bloomberg said that the move will allow him to end the hiring freeze he put in place earlier this week. He said the increased sales tax will provide the city with the revenue needed to begin hiring police officers, firefighters, and other personnel.

"The main thing was passing the sales tax so that we can now go ahead and I will unfreeze the hiring freeze that we had," said Bloomberg. "We still have to watch. We still have problems down the road, so we're not hiring willie-nillie."

The State Senate stalemate ended yesterday the same way it began, with Bronx Democrat Pedro Espada Jr. switching sides, and in the process ending up being rewarded with a powerful leadership post.

Espada returned to the Democratic fold under a new agreement that makes him majority leader.

Former Majority Leader Malcolm Smith becomes Senate president and John Sampson the conference leader.

The Senate held a late-night session, working into the wee hours of the morning to pass more than 100 bills.

Senate leaders also say they've come up with a framework for rules reform.

Lawmakers did not immediately take up more controversial measures like mayoral control of city schools or a bill allowing same-sex marriage.

The State Senate was scheduled to meet again today at 3 p.m. to take up the issue of mayoral control, but the session has been cancelled. Lawmakers will convene again next Wednesday, July 15th.

The Senate has been gridlocked since Espada defected to the Republican conference last month.

"On June 8th, my colleague Hiram Monserrate and I took action that we believed could make the institution of the State Senate more functional and more productive," Espada said yesterday. "It was never about power, but empowerment."

Republican leader Dean Skelos indicated he will accept the new Democratic majority. But he said he does not expect the Democrats will remain in power.

"There are so many factions there that would like to, quite honestly, slit the other factions' throat, that I think it's going to be very, very difficult for them to lead and govern while we have 30 strong right here in this room," said Skelos.

Governor David Paterson says he's happy the impasse is finally over, but had harsh words for the lawmakers who engineered the coup.

"The end has to justify the means," said the governor. "I don't know that in my fight for reform, I would have tied up the Legislature in the last two weeks of session, nor would I have disregarded the needs of New York State's residents for an entire month."

As a result of the lawmakers return to work, State Comptroller Thomas DiNapoli said he will once again start issuing paycheck, vouchers and per diems. DiNapoli put a stop on the paychecks on Wednesday.

Meanwhile, the battle over Paterson's decision to appoint Richard Ravitch as lieutenant governor is on hold until next Wednesday.

Lawyers for State Senators Pedro Espada Jr. and Dean Skelos and the governor's counsel, Kathleen Sullivan, told the judge today they needed more time to prepare their arguments.

"The current status is Lieutenant Governor Ravitch is in office, the status quo is he's the lieutenant governor," said Sullivan. "We will continue to brief the preliminary injunction next week and that's all that's happening so far."

"I would say that there is someone who is as the caption says, 'the punitive lieutenant governor,' but he is not the constitutional officer, the legal person to hold that seat," said David Lewis, the counsel for Skelos. "He has shown up to do that job, that doesn't necessarily mean the constitution supports him being there."

Ravitch told NY1 political anchor Dominic Carter that he would not be affected by if the judge ruled against the appointment.

"I wouldn't be embarrassed at all and I have children and grand children who might even be very pleased. But the fact of the matter is seriously, Dominic, I do not have an independent legal view," said Ravitch. "This has been a crazy, busy week, and the governor has selected one of the great constitutional lawyers in the country, Kathleen Sullivan."

On Wednesday, arguments will be held about whether the state constitution allows Ravitch to serve as the state's second-in-command.