In tackling New York's budget crisis, Gov. David A. Paterson has shown courage and an ability to lead.

He has convinced the state Legislature to work with him in cutting state spending by nearly $2 billion over the next two fiscal years.

The governor has sounded the alarm on billions of dollars in deficits that threaten New York's economic health. At his behest, legislators attended a special session Tuesday and Wednesday, where they cut $427 million from the current state budget, with recurring savings next year.

In March, the Legislature trimmed $500 million from the budget presented by previous Gov. Eliot L. Spitzer. Mr. Paterson led by example, cutting $630 million from his state agencies to close New York's first deficit this year.

In calling the emergency session, the governor had designated $600 million in cuts for the current $122 billion budget. The reductions are less than 1 percent of the budget, reducing the growth in spending approved in April.

The agreement includes cuts across the board in many areas. It leaves school aid intact and caps the rates on Medicaid reimbursements to hospitals. Gov. Paterson is also sweeping several executive funds.

The solutions are structurally sound and are not just one-shot actions. The idea is to cut the rate of spending which has soared to two or three times the inflation rate each year.

The effort is laudable. The governor is to be applauded as well as state Senate Majority Leader Dean G. Skelos, R-Rockville Centre, for getting this done.

There are some disappointments. Assembly Speaker Sheldon Silver, D-Manhattan, stonewalled the idea of a property tax cut, which deserves some discussion. Mr. Silver continued his demand to raise taxes on individuals with substantial incomes. And lawmakers can do better than cut a mere $50 million from pork-barrel spending. This is no time for pork, and all areas of the state should recognize that.

Raising taxes will not be the solution to New York's fiscal dilemma. Spending discipline is the answer.

The governor and the legislators have taken an important first step in meeting the state's challenges. New York is projected to face $20 billion in deficits over the next three years.

By cutting spending during the fiscal year and agreeing to fiscal restraint in the future, the state's leaders are facing reality.