SYRACUSE -- Governor David Paterson unveiled his budget Tuesday, a month ahead of schedule, to the applause of legislators and state bureaucrats. They all know this may be one of the most difficult state spending plans in recent history. The spending plan amounts to more than $121 billion and addresses a projected $15.4 billion deficit brought on by the collapse of Wall Street.

"We can no longer spend more so, we have to spend more effectively." Paterson said, "We are going to have to streamline our government at this time."

Some of the actions proposed by the Governor include: eliminating 3,108 state jobs mainly through attrition; a 3.3 percent cut in school aid; closing loopholes in the state income tax; eliminating star rebate checks but the savings would be reflected in property tax bills; hiking SUNY tuition by 14 percent; and expanding the sales tax .

Many taxpayers like Steve Bolster are not pleased, "Taxes are bad enough in New York State and they're wondering why everybody is moving out."

While Bolster complained of higher taxes and fees, Syracuse School Superintendent Daniel Lowengard complained of cuts to education. Lowengard says the city will receive $25 to $31 million less in state aid, which could lead to 350 to 400 layoffs in the city schools. "This is just too much too quick but we're going to have to figure it out. Everything is on the table." Lowengard told reporters Tuesday evening.

Superintendent Lowengard says he will ask Mayor Matt Driscoll to see if the city can make up for some of the loss in state aid. Reached by phone, Mayor Driscoll says, "It's doubtful the city can make up that kind of a gap." The Mayor added that, "Everyone needs to work together to set up a plan...we all knew this was coming."

Driscoll says the impact to the city side of the budget amounts to $1.2 million less in state aid. Driscoll says its something he "can deal with."

Governor Paterson's budget is now in the hands of the legislature. Lawmakers must come up with changes and put it in place by April first. By law the state must pass a balanced budget.