After the traditional thank you's to other legislators and governors past (Carey, Cuomo and Pataki—no Spitzer), Governor David Paterson minced no words and opened his first State of the State address with, "My fellow New Yorkers: Let me come straight to the point - the state of our state is perilous."

He was sure to emphasize the gravity of the economic situation: "New York faces an historic economic challenge, the gravest in nearly a century. For several months, events have shaken us to the core. Bank closures, job losses and stock market meltdowns have destabilized the foundations of our economy. Since January 2008, two million Americans have lost their jobs. During this recession, an estimated 225,000 New Yorkers will be laid off." And so forth.

Paterson also reminded, "This is a moment for leadership, not for partisanship or salesmanship, but leadership. Throughout our history, in times of challenge, we New Yorkers always come together and rise to the occasion," before launching into other examples of rising to the occasion (the Revolutionary War, the Erie Canal, the building of the Empire State Building during the Depression) and then getting to the heart of his speech:

This year, in this legislative session, we must do three things:

First, we must balance the budget. It will be painful but our state law demands it and so we shall do it.

Second, we must strengthen our health care system; improve our schools; create jobs; rebuild our infrastructure; clean up our environment; and begin a clean energy revolution.

And third, even in these difficult times, we must make sure we respect one another, serve one another and protect one another.

Paterson asked the State Legislature to pass the Ravitch Commission recommendations for the MTA (which would help offset severe fare hikes and service cuts) and emphasized the need to invest in infrastructure projects. On healthcare, besides his desire to expand healthcare coverage for dependents up to age 29, he also proposed banning transfats in restaurants and junk food sales in schools, as well as, (perhaps taking a lead from NYC) putting up calorie information in chains restaurants.

Paterson said, "By 2015, New York will meet 45 percent of its electricity needs through improved energy efficiency and clean renewable energy," and believes that creating a "clean energy economy" can also create 50,000 jobs, whether through retro-fitting houses or by giving the Big Three automakers a base to research and develop hybrid vehicles. He struck a somber note when getting to his third point, discussing recent hate crimes and saying that "hate has no place in the Empire State," and urged people to help each other by volunteering (directing them to New Yorkers Volunteer).

While admitting the task ahead is daunting—with the "hard choices necessary to balance our budget," besides job creation, health care, education, etc.— he ended, "Let us resolve to remember this moment as the moment we decided to take back the future of New York. Let us build hope for the future. Let us create justice for the next generation. Let us combine ability with determination to produce a better New York for all families. Ladies and gentlemen, let us write the history of New York here today. Thank you; God bless New York; and God bless America."

More on Paterson's proposals here; plus, PDF of his full speech.