Tom Golisano will be using his fortune to influence this year’s battle over the State Senate.

The maverick billionaire and three-time gubernatorial candidate will next week travel to Albany to announce a plan to form a 527 political action committee to support candidates in State Senate races across New York.

A source familiar with Golisano’s thinking said the former gubernatorial candidate plans to spend $1 million of his own money per race on behalf of each candidate he supports. This includes targeting several incumbents, including at least one who was not previously in danger. Golisano could also potentially involve himself in contested Assembly primaries.

The source said Golisano plans on supporting candidates who share his agenda of reforming Albany, reforming the state budget and promoting economic development upstate, particularly in the region around Buffalo which he calls home.

Candidates will mainly be Democrats, but Golisano will consider endorsing Republicans in the races. Candidates will need to be moderate, committed to Golisano’s agenda and not aligned with career politicians, according to the source.

Golisano’s political website, www.golisano.com, which has remained dormant since his announcement that he would not run for governor in 2006, was updated June 27 with a teaser to “Stay tuned for an important announcement coming soon.”

Golisano will be supporting Erie County Legislator Kathy Konst (D) in her bid to unseat State Sen. Dale Volker (R-Erie), former boxer Joe Mesi (D) in his primary bid to succeed retiring Sen. Mary Lou Rath (R-Erie) and former State Sen. Rick Dollinger (D-Monroe) in his bid to unseat Sen. Joe Robach (R-Monroe), though Golisano is unlikely to announce these specific candidates at his press conference next week.

The source did caution that developments are fluid and more candidates could be announced next week. Dan Squadron, the former aide to Sen. Charles Schumer (D) who is running a primary contest against State Sen. Martin Connor (D-Brooklyn/Manhattan), could end up as a Golisano-backed candidate, according to the source, who noted Golisano has yet to talk to Squadron or reviewed his positions.

The source said that Golisano has made no final decisions on supporting Assembly candidates, but noted that former Buffalo Council Member Barbra Kavanaugh’s primary challenge to Assembly Member Sam Hoyt (D-Buffalo) is a likely pick. Three other Assembly races with primary challengers are already under consideration.

Though the effort will boost Democrats, Golisano has apparently not yet discussed his new PAC with State Senate Minority Leader Malcolm Smith (D-Queens) or other state Democratic leaders. He could, however, team up with other wealthy businessmen upstate to influence the elections. One possibility is powerful Buffalo developer Carl Paladino, whose strong dislike for Volker has already led to his support for Volker’s primary challenger.

He is open to expanding the effort, and plans to send questionnaires to candidates statewide and conducting interviews in order to find more likeminded supporters.

Geography influenced his early decision to support Konst, Mesi and Dollinger.

“They are close to home,” the source said referring to Golisano’s Rochester base.

Ahead of this effort, Golisano has become a major player in Buffalo in recent years, owing to his 2003 purchase of the Buffalo Sabres hockey team. Golisano’s chief political advisor is former Erie County Democratic Chair Steve Pigeon, who is expected to play a major role in the new PAC. Some say Pigeon’s fingerprints can already be seen on the Konst and Mesi endorsements.

Konst is the most surprising move of the Golisano involvement, given her May announcement that she was seeking the congressional seat being vacated by Rep. Tom Reynolds (R-Erie). Golisano offered his support if she switched to the Senate race in a meeting last week. Konst, who according to sources was floundering in her bid to secure petition signatures for her late start congressional bid and was circulating Senate petitions at the same time, began telling people over the weekend that she had made the change.

According to former East Aurora Mayor Dave DiPietro (R), who is running a primary challenge to Volker, Konst’s husband, politically active attorney Harry Konst, told him last week that Golisano promised $1 million to support his wife’s Senate bid.

Harry Konst, who is managing his wife’s campaign, claimed he has not discussed the Senate bid with her and said he did not know who Golisano is.

Kathy Konst, who is known for her independence from the county political leadership, did not return a message left for comment.

Golisano’s support of Konst could be the second part of a one-two punch that could end Volker’s 33-year Senate career. DiPietro’s campaign has at least $60,000 in the bank and the active support of Palladino, who said he will raise money for DiPietro. Palladino has also been running independent radio ads attacking the Legislature. DiPietro’s potentially strong and damaging challenge to Volker from the right also apparently encouraged Konst to change races.

Palladino said he plans to do anything he can to support DiPietro in his bid and hopes to see him unseat Volker in the primary. He did not rule out assisting Konst in a general election, but noted he would prefer the Senate to remain Republican. Palladino said he opposes Volker’s support for what he defines as anti-business legislation and for being in Albany too long.

“I’ve thought of him as a friend,” Palladino said. “His shelf life is over. He thinks everything is fine in Albany. Albany is murdering upstate New York. Even Barack Obama would be a better alternative to Dale Volker. And that’s bad for me.”

Mesi is currently locked in a three-way primary battle with Amherst Council Member Dan Ward and Erie County Legislator Michelle Ianello in the contest to succeed Rath. Mesi, who is famous for his boxing career, is close to Pigeon, who is playing a major behind the scenes role in the Mesi campaign.

Erie County Legislator Mike Ranzenhofer is the Republican nominee in the race.

Dollinger declined to challenge Robach in 2002, instead seeking a county judgeship. He was recruited into this year’s race by Smith and then-Gov. Eliot Spitzer (D) and used that backing to muscle out several other candidates. The race is viewed as the most likely Democratic pick-up upstate.

In the Assembly, Hoyt is facing off against Kavanaugh for his Buffalo area seat. Kavanaugh is being backed by Buffalo Mayor Byron Brown (D), who has long feuded with Hoyt, who has been seen as having his eye on the mayoralty. Brown is close to Pigeon, including once employing Pigeon on his State Senate staff. Hoyt is also close to Erie County Democratic Chairman Len Lenihan, with whom Pigeon has often feuded.

The other Assembly primaries include Buffalo area Assembly Member Mike Cole (R), who is facing off against wealthy soccer mom Jane Corwin. Cole has been embattled since he was censured by the Assembly last year sleeping on an intern’s bedroom floor.

But Golisano could expand his challenge beyond the Buffalo area. The primary challenges of Assembly Member Greg Ball (R-Dutchess) by former Brewster Mayor John Degnan and Assembly Speaker Sheldon Silver (D-Manhattan) by Paul Newell and Luke Henry are under consideration. According to the source familiar with Golisano’s thinking, the billionaire is studying these races and deciding whether to intervene.