Paterson: New York Needs Federal Aid to Overcome Fiscal Crisis

Meanwhile, Sanford is urging Congress not to pass another stimulus package because he says it won't fix the economic problems but only drive the country deeper into debt.

Paterson blames the record deficit on a recession, troubles on Wall Street and overspending on the part of the state. He also says the current budget deficit has grown $300 million dollars in a month, to $1.5 billion dollars. He also believes at this pace, the 2009-2010 fiscal year budget deficit will be $12.5 billion dollars.

But state lawmakers say there are places that can be cut. They point out that in 1994-1995, the fiscal year budget was $62 million dollars. Today, that number is $120 billion.

"America's economic downturn has now entered into unchartered territories," said Governor Paterson, who added it is projected there will be 160 thousand job losses in New York State as a result of this crisis.

Governor Paterson points out the budget was balanced on April 9th. The crisis hit, and the deficit grew to 630 million dollars. He says it was re-balanced again on August 20th by the legislature, but has now grown to 1.5 billion dollars. State lawmakers are heading back to Albany on November 18th where they are expected to make another two billion dollars in cuts for this fiscal year alone.

The governor will also be the first witness before the House Ways and Means Committee meeting Wednesday. "I will encourage our colleagues in government in Washington of the importance of stabilizing New York's economy, as it is a vital engine in the production of economic development in our national economy."

"Don't get me wrong, there will be hard and painful cuts," said Paterson. "There is no segment of this budget that will not be cut. There is a need at this time to address this problem as soon as we can so that we can recover as quickly and strongly as we'd like."

State Senator Antoine Thompson, a democrat says lawmakers will have to look at cuts and reforms but also financial assistance from the federal government. "We also need to make sure that where there are programs not working, take a strong and careful look at those programs that are not working, make sure we cut down on waste and abuse in terms of fraud in the medicaid program."

Assemblyman Jack Quinn, a republican, said tough but necessary choices need to be made, but they need to be made across the board. He said closing that deficit shouldn't rely on one shot deals or selling off of state assets that could end up mortgaging the long term future of the state. He also said layoffs are a possibility, even in lawmakers own offices. He maintains the cuts are do-able, saying when lawmakers were called back in August "we did next to nothing." "We really cut around the edges, but we really didn't cut into the state budget."

Senate Majority leader Dean Skelos say any efforts to close the budget should NOT include raising taxes. Assembly Speaker Sheldon Silver says "we will need to tighten our belt and make deep cuts in spending." He also said the Federal government needs to act to stimulate the economy.