Amidst rough economic times, New York State’s deficit will grow to $44 billion over the next five years, according to Gov. David Paterson’s budget office’s mid-year report released Friday. The state recession will not end until the second half of 2010, according to budget officials.

The growth in deficit projections is partially contributed by a decrease in revenue from tax collections. Although the state instituted a tax increase on higher-income groups in April, income tax collections are down $4.4 billion, or 22 percent, from the same period last year.

New York State wages fell 15 percent in the first quarter of 2009 and are projected to decline 5.8 percent by the end of 2009, which would be the largest plummet in the history of the Quarterly Census of Employment and Wages, according to the Bureau of Labor Statistics.

In an attempt to solve these financial woes, Gov. Paterson has proposed cutting aid in education and health-care, according to the Ithaca Journal. Paterson has asked politicians in Albany on Nov. 10 to help address the state’s fiduciary responsibilities.

“The fiscal challenge we must address is clear and undeniable,” Paterson said in a statement.