Just when you thought the state's budget crisis could not get any worse, Governor David Paterson announced the deficit is growing.

The budget gap will top $10 billion by the end of the 2010-2011 fiscal year, Paterson announced on Thursday during a legislative leaders meeting.

It means Paterson's $5 billion deficit-reduction plan will only take care of half of the problem. The other $5 billion will need to be addressed, likely when lawmakers craft the new fiscal year's budget early next year.

One possible solution recommended by the governor: a spending cap, an idea Senate Democrats have resisted.

Another possibility: use leftover federal stimulus money to fill part of the budget hole.

"Fortunately we didn't spend all of the stimulus money," said Sen. Antoine Thompson (D-Buffalo). "So there's growing debate to how much money is still available and whether or not people can agree to use more stimulus money in the budget."

Senate Republicans, who support the spending cap, said further cuts are needed.

Senator Michael Ranzenhofer (R-Amherst) wants an across-the-board 15 percent cut in all departments.

"I think there was a report recently where 1.5 million people left the state this decade," Ranzenhofer said. "You no longer have those people paying income taxes, property taxes, sales taxes, they're leaving for a reason. Taxes are too high. Jobs aren't here. And you need to reverse that trend."