ALBANY, N.Y. (AP) - Governor Paterson is telling state agencies to draft zero-growth budgets to fend off a $5.4 billion deficit projected for the coming fiscal year.

A no-growth budget for the agencies that run everything from parks to highways and environmental protection programs would be rare in New York.

Overall state spending - which also includes the costs of education, health and other programs - has increased at two and three times the inflation rate in some recent years.

Paterson said it's not fair for the state to refuse to limit its expenses at a time when hard-working taxpayers are forced to do the same thing every day.

Agencies are beginning to compile their budget requests now for the 2009-10 fiscal year that begins in April. Paterson will propose his budget in January.