Late Friday, Governor David Paterson told reporters that the State of New York would miss out on about $178 million in tax revenues because 6 top executives at Goldman Sachs Group (GS: sentiment, chart, options) have elected to forgo their annual incentives. According to Gov. Paterson, the state receives about 30% of its first-quarter tax revenues from the financial sector.

This dire statistic prompted Paterson to note, "We are in recession-ville." He warned that "we will graduate to a 10-year recession" unless state and federal governments rein in their spending.

In order to stave off a budget crisis in his state, Paterson has suggested levying new taxes on Internet music downloads, as well as sugar-laden sodas and juice drinks. New York is currently sitting on a $15.4 billion deficit.