Paterson Says Special Session May be Needed BUFFALO (wned) - Governor Paterson says New York's fiscal health is nearing crisis.

With recent troubles on Wall Street taking their toll on the state's economy, Paterson says another special session of the legislature may be needed.

"We're going to have to cut back on spending, which is going to be very difficult for residents around this state to take and if this angers people, I don't blame them," Paterson said in Buffalo on Monday.

Paterson says he issued warnings on the potential severity of the economic downturn months ago.

The governor says 20 percent of the state's resources come from Wall Street and every time Wall Street takes a hit, New York's deficit grows by between $1.5 and $2 billion.

Buffalo Mayor Byron Brown says his administration has done its part in cutting spending.

"We've tried to reduce overtime in non-essential areas...we tried to take back take-home cars...we have established a rainy day fund...because we knew that tough times were potentially looming," Brown said.

Brown says the city is prepared to deal with cuts should they be neccessary.

© Copyright 2009, wned