NEW YORK, NY April 08, 2008 —Gov. David Paterson says the state is facing tough economic times ahead and officials need to act now. WNYC's Elaine Rivera reports:

In one of his first major speeches as governor, Paterson told a crowd of business and civic leaders during a Midtown breakfast that legislators need to tighten their belts. He says the budget presented to him was too big, too bloated and he wants the legislators to cut back on spending to reduce a looming budget deficit.

PATTERSON: I've decided when we get this budget passed, I am going to go to every legislator and talk to them eyeball to eyeball about the problems with this economy.

REPORTER: With the the failure to pass congestion pricing, Paterson says he's appointed a blue ribbon panel to come up with other solutions to close the growing gap in the Metropolitan Transportation Authority's capital plan. For WNYC, I'm Elaine Rivera.