ALBANY -- New York Gov. David Paterson is presenting his vision for the state's future in his state of the state address.

Traditionally it's the governor's opportunity to lay out his early plans for the budget, but the meltdown on Wall Street and subsequent fiscal crisis forced Paterson to present his financial plans in mid-December.

The $121.1 billion proposal includes layoffs, a cut in school aid, 88 new or higher fees, and the early release of 1,600 inmates.

If the Legislature passes it, the proposal would also increase total spending by 1.1 percent — or $1.3 billion — and close $15.4 billion in deficits over two years.

The governor's speech before a joint session of the Legislature, scheduled to begin at 1 p.m. Wednesday, opens the 2009 legislative session.