He set a May 16 deadline for outlining budget savings, the New York Post reported Tuesday. While the limited hiring freeze may only affect a few hundred jobs, a full hiring freeze could affect many more.

The governor has been warning that lost revenue because of the slowing economy means the state may not have the money for the $122 billion budget he signed recently. He has also promised to cut $10 billion from his proposed budget next year.

Paterson, who moved up from lieutenant governor to governor when Eliot Spitzer resigned, also told an Albany radio station he is leaning toward running for a full term.

"I think I will be," Paterson said. "I'm inclined to like to be around here for awhile."