New York is ungovernable, especially during a recession, due to factional politics preventing making cuts to social services combined with the two-vote majority the Democrats have in one of the state legislatures, combined with the fact that New York is forced to have a balanced budget.
And he wasn't elected in his own right. Paterson has the tendency to be overly meticulous in his decisions, to the extent that it impedes his ability to lead [see: Gillibrand, Kirsten].
But if it wasn't a recession, he'd'a'be doin' better.