NEW YORK, NY October 17, 2007 —Governor Spitzer says he's "bracing" himself for a tough budgetary environment. First, the economy's slowing and the governor hasn't been on speaking terms with some of his colleagues in Albany.

REPORTER: Governor Spitzer says his priorities are investing in education, controlling health care costs, and continuing property tax cuts. Last year's negotiations weren't easy he says this year, they'll be even harder.

SPITZER: Anybody who expects reform and change without the sparks without the pushing and pulling doesn't understand the reality of governance. Transitions are tough and I'm not going to shy away from it. I'm not going to hesitate to push. I'm not going to hesitate to say what needs to be said. If it isn't always pretty so be it.

REPORTER: Budget hearings start next week in Albany.