New York state will have to cut 2,000 public sector jobs by the end of 2010 to keep it on track to meet financial targets, the Division of the Budget said on Thursday.

Our difficult fiscal condition requires that a plan be prepared to achieve fiscal balance, the department said in a memorandum to agency commissioners.

The memo also asks commissioners to again review their operations and come up with proposals that will help offset the impact of the weak economy and slumping revenue.