ALBANY, N.Y. -- "Let me come straight to the point - the state of our state is perilous."

Governor David Paterson delivered his first State of the State address before a joint session of the Legislature on Wednesday.

Paterson calls the future a historic economic challenge, the extent of which we sill don't know.

He said Wall Street was hit the hardest, which has a direct impact on the budget of the state.

Thousands of people have lost their jobs and Paterson expects hundreds of thousands of New Yorkers to be laid off during the recession.

He calls on leaders of the state to take care of the priorities for the state.

He said anytime there has been a challenge in the state's history, New Yorkers have risen to the occasion.

"Courage and hope are the birthright of every New Yorker," he said. "Every New Yorker has experienced pain and adversity, but hope and courage forge our character. This is a time for hope and courage, but more importantly this is a time for action."

Paterson laid out what he wants to accomplish this year, including a balanced budget, strengthening the health care system, improving schools, creating jobs, rebuilding infrastructure, cleaning up the environment and beginning a clean energy revolution.