New York will need to make cutbacks to plug a $384 million hole that opened up in the proposed fiscal 2009 budget when the division of budget revised its revenue projections downward, Gov. Eliot Spitzer said yesterday.

In a press release, Spitzer attributed the drop in projected revenues to a drop in the stock market, more than $30 billion of sub-prime related write-downs, and a slowdown in the national economy. The previous set of projections were reported two months ago. Financial services generate one-fifth of the state's tax revenue.

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