Governor Paterson, sounding the alarm bell, saying that there is a 6.4 billion dollar deficit for next year. He is calling the State Legislature back on August 19th, and says the budget process for next year begins right now.

In the last budget go round, he called for a cut of 800 million dollars in proposed spending increases. The budget ended up being about 122 billion dollars. It's now the reality that state lawmakers will have to trim more.

"There is always waste in state government. There are several things that the state is doing now that are ridiculous, that average taxpayers would think is a foolish waste of money. The Lieutenant Governor's office is being funded right now with no Lieutenant Governor in office," said Assemblyman Jim Hayes.

"I think we will be making across the board, cuts across the state. It is going to impact the City of Buffalo. It is going to impact the city schools," said Assemblyman Sam Hoyt.

City officials say they have already been tightening their belts.

"I certainly hope to work with Governor to make sure that buffalo is not negatively impacted," said Assemblyman Sam Hoyt.

County Executive Chris Collins says they get no aid from Albany, but matching dollars for certain programs like the department of health. He does not expect those programs to be cut, but as for a possible looming deficit?

"Albany year in and year out doubles their spending at triple the rate of inflation. They are spend aholics and they need to get their own house in order," said Collins.