Paterson projects next deficit a record $8 billion

New York Gov. David Paterson predicts the 2009-10 state deficit will be a record $8 billion.

He says, however, that the deficits projected for the several years should be handled without raising taxes. The Democrat says he has agreement with legislative leaders on taking tax increases off the table at least for the next several months.

That was also the goal of Republican Senate Majority Leader Dean Skelos of Long Island who sought a pledge of no tax increases in a meeting of state leaders last Friday.

A recession and Wall Street's meltdown have led to what Paterson says will be a $2 billion shortfall in the current budget. He and legislative leaders plan spending cuts to balance the current $120 billion budget.

The 2009-10 fiscal year begins April 1.
   
(Copyright 2008 by The Associated Press.  All Rights Reserved.)