Gov. David Paterson and state leaders officially announced the new state budget Monday.

Paterson says the new budget will be both "on time" and fiscally "responsible." He says state leaders had to make tough choices in creating the deal. Included in the new budget are controls on Medicaid spending and increases in welfare benefits. Long Islanders making more than $300,000 will also see a new tax in the budget.

According to Paterson, the state deficit soared to $17.7 billion.

Lawmakers hope to approve the budget before Wednesday's deadline.

To watch Gov. Paterson's full budget announcement, go to Channel 612 on your iO digital cable box and select iO Extra.