In March 2008, Paterson warned that New York state faced its worst fiscal crisis since 2001. On July 29, Paterson gave a rare televised address that was broadcast on all of New York's major news networks, stating that the state budget deficit had gone up $1.4 billion over the 90 days since his original budget submission, citing rising costs due to the poor economy and a struggling Wall Street, and calling the state legislature back to Albany for an emergency session starting on August 19, 2008.Press Release from Governor Paterson's office on the official NY State website. Retrieved July 30, 2008. Times Union blog of July 29, 2008. Retrieved July 30, 2008.Karlin, Rick, "Paterson: 'Time to act': Citing fear of budget disaster, governor recalls Legislature," Albany Times-Union, July 30, 2008. Retrieved July 30, 2008. He also warned that the budget deficit was estimated to grow 22 percent by 2011.Paterson: State Deficit Up $1.4B Over Last 90 Days WCBS. 29 July 2008. With AIG on the verge of collapse on September 16, 2008, and in the aftermath of Lehman Brothers filing for bankruptcy, Paterson publicly lobbied for a government bailout of the insurance giant. He hit the cable networks early and was quoted by media around the world.
