New York's Paterson Proposes $134b Budget with Cuts, New Taxes

Saying that this is "not a budget of choice, but of necessity", Paterson proposes closing a $7.4 billion dollar gap by cutting school aid, health care and state agencies by more than one billion dollars each.

"Our revenues have crumbled, and our budget has crashed," said Paterson. "We can no longer afford this spending addiction that we have had for so long."

Paterson also revives his proposal for a one cent charge on sugared soft drinks. The governor proposed the so-called "fat tax" last year, but later dropped the plan in the face of opposition from the beverage industry and members of the legislature. Paterson would also like to raise the cigarette tax by another dollar, and attempt to collect taxes on cigarettes sold on Indian lands. Under the governor's plan, wine would be sold in grocery stores, Ultimate fighting, banned in New York, would become legal, and hours for state sponsored gambling like Quickdraw and Video Lottery Terminals would be expanded, all as a means of gaining more revenue.

The proposal calls for raiding an environmental fund, and a moratorium on state purchases of open space land. The budget would also end training, for now, of any new state police officers, and the closing of some highway rest stops.