ALBANY - As state Comptroller Thomas DiNapoli warned New York's midyear budget deficit could reach $4.1 billion, Gov. David Paterson said he will propose painful spending cuts Thursday because the Legislature refused to propose its own.

“My first concern would be inaction,” DiNapoli said. “It's certainly not the appropriate response.”

“We're going to have to make some very tough choices,” Paterson said Wednesday. “If we don't, we risk going down a path New York has not gone.”

He noted other states have to pay exorbitant interest rates because their credit ratings were damaged when they couldn't pay bills, and that some states have resorted to laying off workers, releasing prisoners earlier and cutting pensions.

“I'm not going to let New York go into default,” Paterson said. “Those who examine fiscal policy would see that this deficit has to be closed right now.”

He said that even though some Wall Street firms are showing positive signs that could translate into a return of substantial income tax revenue for the state, any boost won't come until after Jan. 1. He insisted the state must act now on this fiscal year's deficit, which he estimates at $3 billion.

“Some people are saying we should take care of it next spring,” Paterson said, referring to unidentified lawmakers. “They should go manage the Mets.”

Republicans in the Senate's minority provided $2.2 billion in cuts taken primarily from the additions the Senate and Assembly Democrats made to Paterson's budget proposal. The $132 billion budget for 2009-10 was approved in April.

Legislative majority leaders wouldn't propose cuts, noting governors traditionally do that.

A week ago, Paterson set Wednesday as a date for the Assembly and Senate majorities - each controlled by Democrats - to direct their fiscal staffs to propose cuts, but none came.

“Like all New Yorkers, we look forward to his ideas as well as an accurate economic forecast that will move the process forward as we determine the most fiscally responsible course of action,” said Travis Proulx, spokesman for Senate Democratic Conference Leader John Sampson of Brooklyn.

More forecasts could take weeks.

“We will proceed to discuss the governor's proposals with our members and have a public airing as quickly as possible,” said Melissa Mansfield, spokeswoman for Assembly Speaker Sheldon Silver. She wouldn't say whether the conference provided any cuts.

“Speaker Silver is still not ruling out tax increases and is refusing to put any ideas forward to cut spending,” said Senate Republican leader Dean Skelos of Nassau County, whose conference holds 30 of the Senate's 62 seats.