Governor Paterson warns of difficult economic year ROCHESTER, NY (WXXI) - Governor David Paterson says indications are that New York State is in for a very difficult economic year. And he says state government must prepare for the worst of circumstances.

Appearing on WXXI's 1370 Connection Monday, the Governor said he got a powerful early warning of economic and fiscal trouble when he saw how far tax receipts from the state's biggest banks and financial institutions have fallen this year compared with 2007. He says tax revenues from the largest financial companies last month were only 14% of what they were a year ago.

As a result he's telling agency heads and legislative leaders to prepare for austerity in the months ahead. Governor Paterson did say, however, that the state will fulfill its commitment to new initiatives specifically aimed at upstate economic development. He says in many ways, upstate New York needs the same kind of help that New York City got during the crisis that Hugh Carey faced more than 30 years ago.

Hear audio of Monday's 1370 Connection with Governor Paterson. © Copyright 2010, WXXI