03/18/2010 05:12 am ET Updated May 25, 2011

Paterson: New Taxes May Be Necessary To Balance Budget

Governor David Paterson says he will stick to a self imposed cap on state spending when he releases his budget later this month, and promises to even generate a surplus that can be given back to New Yorkers in the form a property tax credit. The governor also says he could support new taxes on cigarettes, as a way to raise revenues to help close the state's budget deficit.

Paterson says new taxes will not be a significant part of his budget plan, he instead will concentrate on deep spending cuts. But he says he understands that when the legislature sees his proposed slashes to programs, some new revenue raisers may be necessary.