ALBANY - State Comptroller Thomas DiNapoli reported Monday that New York still faces “potentially unprecedented deficits,” although spending cuts and personal income tax collections that grew by more than 15 percent over the past six months have helped reduce this year's anticipated shortfall.

According to the comptroller's office, business taxes dropped 13 percent compared to the same period last year, the growth in personal income taxes was beginning to fall off and year-end Wall Street bonuses are expected to drop significantly.

“Things are looking very shaky,” DiNapoli said. “New York needs long-term solutions that don't make an already bad situation catastrophic.”

Gov. David Paterson has asked lawmakers to return to Albany Nov. 18 to cut more spending from the state's $120 billion budget, beyond the more than $1 billion he and lawmakers cut this summer.

Speaking earlier Monday on CNBC's “Squawk Box” program, Paterson said that before this year's economic downturn, the state was already spending beyond its means, likening it to reckless American consumers moving debt from one credit card to another.

“As I see it, Albany is so captured by the sense of everyone else trying to pass the buck along to someone else that you already hear leaders, which I think is very irresponsible and I don't care if there's an election right now, talking about, ‘We're not going to change school aid in the middle of the year. We're not going to do this. We're not going to do that.' And really I think we can just look forward to a very dismal period,” Paterson said.

Despite a Budget Division projection the state is now on track for a $1.2 billion deficit this fiscal year, Paterson said he expects it to reach $2 billion because of tax revenue lost to a 10 to 15 percent drop in Wall Street bonuses and capital gains.

“The legislative branch has to work with the executive branch to close this deficit,” he said, adding “fiscal realism, not ideology,” should guide them now.

“What's the worst thing that could happen? So you cut $2 billion and miraculously we don't need it,” he said.

“We can start taking it off what's at least an $8 billion deficit next year. Paying down on principal. Saving.”

According to the comptroller's office, general fund revenues from April 1 to Sept. 30 rose $2.8 billion from the same period last year to $29.4 billion. Total receipts were $58 billion, about $536 million below projections.

Spending from all government funds rose 7.7 percent, or $4.1 billion, mostly because of growth in local assistance payments to $56.9 billion.