The state is currently considering a raft of drastic measures to narrow its ballooning $9.2bn budget deficit.
America's third-largest state by population will examine the amount of taxes paid by Wall Street bankers as it tries to solve its budgetary woes.
Smaller-than-expected tax payments and delayed payments from a number of major projects have led to the increase in the budget deficit.
During a town hall meeting at Brooklyn Borough Hall, Paterson tried to set aside the swirl of rumours surrounding his political future and get back to the business of addressing the gaping state budget problem.
The governor admitted that the state is discussing drastic measures to control spending and increase revenue, such as enforced, unpaid holidays for state workers and issuing IOU's for payments.
This also includes targeting Wall Street, the state's most lucrative asset, with Paterson planning to talk to major financial firms. The shift in bankers' compensation packages from paying more of bonuses in stock rather than cash has affected the state's budget. Taxes from Wall Street suffered significantly because of the financial crisis.
