After spending nearly a month at a special session to cut New York's budget, lawmakers agreed today to trim $2.7 billion from the deficit. That falls short of the $3.2 billion Gov. David Paterson wanted them to cut--and many say the state has bigger problems to come.

Kathryn Wylde of business group the Partnership for New York City says most of those cuts are one-time reductions and New York will have to contend with an even bigger deficit next year.

"The legislature and the governor will be back at the bargaining table immediately trying to figure out what's going to happen next year when the deficit will be almost twice what it is right now," Wylde says.

Ken Adams is president of the Business Council of New York. He agrees that next year's budget looms large: "The challenge is going to be to find ways to significantly reduce state spending, get the deficit under control and avoid raising the taxes that would kill job growth and private sector and economic recovery."

Adams says a bright spot of the legislature's work today was a deal to scale back some public pension plans. For now, Governor Paterson says he'll withhold some payments to schools and hospitals to deal with the remaining gaps.