ALBANY -- New York Gov. David Paterson is prohibiting all but essential hiring in a sternly worded directive to state agencies.

Paterson says that if his cost savings targets aren't met, he will impose a hard hiring freeze and other measures on agencies. He says he is willing to withhold budgeted funds if an agency fails to meet his cost-saving targets.

The Democrat says the measures are necessary because of declining revenues projected in a worsening economy.