Paterson on Budget: ‘Dire Circumstances’

David Paterson issues more stern warnings about the economy and the state budget today, calling for legislators to make an additional $2 billion in cuts during yet another special legislative session he says he will convene next month, after the elections.

Presenting his "mid-year financial plan update" to reporters in his midtown office, Paterson described the financial situation of the state as one of "dire circumstances."

The governor named two areas in which the state spends a great deal of money, education and Medicare, and where spending has drastically increased in recent years.

Paterson declined to specify a particular area for budget cuts when a reporter inquired. He said he doesn't want to get ahead of legislative leaders, who will make their own presentations shortly.

Asked about taxing millionaires at a higher rate than everyone else, Paterson said, "We certainly should be."

Later, he said raising taxes would likely exacerbate the financial problems many New Yorkers are already facing. Paterson on Budget: ‘Dire Circumstances’