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.

“The only taxes that would be on the table would be dedicated taxes,” said Paterson, who said any additional cigarette tax revenues would be devoted to health care spending.

Source: Public Broadcasting Read the complete article here