Governor: NY Deficit Balloons to $8.2B

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Gov. David Paterson says New York's deficit has grown to $8.2 billion, and he says he’ll present lawmakers with new plans to balance the budget next week.

Paterson says a larger than expected decline in Wall Street earnings and higher than anticipated Medicaid costs contributed to the new deficit. Just before the governor made his announcement the State Comptroller released a detailed analysis of the budget proposal. Comptroller Tom DiNapoli says the governor's revenue projections were unrealistic.

"We've been warning for a number of months now that the budget has been built on unrealistic projections going back to the budget process of last April," DiNapoli says.

And DiNapoli says as the legislature crafts its spending plan, lawmakers can't rely on a miraculous uptick in the economy to bail the state out.