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12/30/2008 09:29 PM

2008 In Review: Paterson's First Year As Governor Marked By Personal Scandals, Growing Deficit

By: Josh Robin

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It was a topsy-turvy year in Albany as former Governor Eliot Spitzer's sexual indiscretions tossed him from office and led to the rise of Governor David Paterson. NY1's Josh Robin filed the following report.

He hates the term, but Governor David Paterson's rushed ascension in March was nothing but “accidental.” His former running mate Eliot Spitzer had just resigned from the governorship in a prostitution scandal, catapulting New York's first African-American and legally-blind person to the government's pinnacle.

Paterson’s first goal was to sooth a state ensnared in a seedy scandal.

"There's trust that needs to be restored. There are issues that need to be addressed," said the governor on March 16.

Soon enough, Paterson would find himself in controversy. Within his first eight days in office, he acknowledged marital infidelity and drug use.

In an exclusive NY1 interview on March 24, Paterson said about his prior cocaine use, “I'd say I was about 22 or 23 and I tried it a couple of times."

But public problems soon dwarfed private scandals, as New York's looming deficits grew over two years to over $15 billion.

There was also a bid for tolls on New York streets pushed by Mayor Michael Bloomberg, that died when the state Legislature never brought it to a vote.

"The conference has decided that they are not prepared to do congestion pricing," said Assembly Speaker Sheldon Silver in April.

Then, once Hillary Clinton was nominated to be President-elect Barack Obama’s secretary of state, Paterson faced the decision of who would fill the Senate seat. The governor has kept his cards close, even as Caroline Kennedy wages high-profile lobbying.

For Paterson, the souring economy is most important. He has been praised for speaking frankly, although that popularity could fade in the wake of his recent budget.

"The other day somebody [in Iraq] threw a pair of shoes at President [George] Bush,” said Paterson two weeks ago. “Now, I don’t know what prompted that action, but I would certainly assert that at the end of this budget presentation, if that's the most severe punishment I get, I'll sign for it now."

His new budget is best known for the scores of new or hiked fees, covering sugary soda to internet downloads. Hiked income taxes for the rich are still an unknown possibility.

It is also unclear who the governor will partner with in the State Senate.

Longtime Republican leader Joe Bruno left in June and was replaced by Dean Skelos. Then, the Republican Party seemed to have lost its 45-year old grip on the Senate.

Yet while there will be more Democrats when the session starts, three are holding off supporting party leader Malcolm Smith.

So with no political party in clear control of Albany, the confusion in the state capital threatens to continue far into the next year.