Paterson Defends Budget to Business

New York, NY —

Governor Paterson defended his budget in front a ballroom full of business people this morning, many of whom will be paying an 8.97 percent state income tax.

Speaking at a breakfast sponsored by the Association for a Better New York, he called the $132-billion budget balanced and effective, even thought it represents an increase of almost nine percent over last year.

PATERSON: We will show you unequivocally that this budget has twice the cuts it ever had before, that the cuts are recurring, that we relieved 80 percent of the out year deficits.

Paterson has said most of the budget increase actually comes from federal stimulus funds - a move critics have called reckless.

Paterson told this morning's crowd that the income tax increases are only temporary and will no longer be necessary when the economy recovers.