Gov. David Paterson indicated today that he wants state lawmakers to pass legislation that would link property taxes to household incomes as part of a way to curb state expenses.

There’s just one problem: The state doesn’t have the money to pay for it.

And Paterson said this afternoon during a meeting of legislative leaders that the state’s two-year budget gap has increased to $10 billion, compared to about $6.7 billion in July.

Paterson, however, said in a statement earlier in the day that when economic times are better, the state should put in place the so-called circuit-breaker program, which would limit a homeowner’s property taxes to a percentage of their income. He said the measure should be approved along with his call for a cap on state spending.

Depending on future state surpluses, the measure could save homeowners between $500 and $1,500 a year in property taxes, he estimated.

“Albany is notorious for two things: overspending and overtaxing. My legislation solves both,” Paterson said in a statement.

At the leaders’ meeting, Senate Democratic Leader John Sampson, D-Brooklyn, said he recognizes that the state now faces a $3.2 billion deficit, but warned of cuts that would hurt schools and health care.

He said the impact of the health-care cuts would be more like $744 million because of federal matching funds compared to the $287 million proposed by Paterson.

“That could be the difference between a paycheck and a pink slip for some of our health-care workers,” he said.

Asked by Assembly Minority Leader Brian Kolb, R-Canandaigua, if he support $3 billion worth of cuts, Sampson said “Maybe you’re with it, but we’re not with cutting services to children, to seniors, education. These are things that will have a serious impact on our constituents in the state of New York.”

Paterson ended the roughly 45-minute session by imploring leaders to agree to his cuts, saying nobody likes having to make deep cuts to programs that impact people’s lives.

He’s called a special session for Nov. 10.

“This is going to be a painful budget process,” he said. “Nobody wants to do any of the things that we’re doing. ”

He later told reporters that he’s pleased lawmakers agree with two-third of his proposed budget plan. Cuts aside, the rest of his plan calls for raising revenue and sweeping funds from other accounts.