Paterson delivered the message to a joint session of the State Legis;ature, pointing to historic economic challenges facing the state.
In his first State of the State Address, Paterson called for "shared sacrifice" and called on lawmakers to work with him.
"This is a moment for leadership; not partisanship, not in any way salesmanship, but real leadership," said Paterson
Paterson is proposing several new initiatives, including establishing an upstate research consortium to develop hybrid electric batteries and energy storage technologies.
He is also calling for completion of the Peace Bridge, greater access to healthcare, and programs to fight childhood obesity.
The governor is proposing a $121 billion budget for the upcoming fiscal year that includes layoffs, a cut in school aid and 88 new or higher fees.
Click the play button above to hear the governor's speech along with the Republican response from State Senator Dean Skelos.
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