NEW YORK STATE -- It was just a few hundred people, but unlike most New Yorkers, this Queens crowd was cheering the governor. The cause: Paterson overturned laws that locked up thousands of New Torkers, many minority, for drug possession offenses.

"On this sunny day in April of 2009, with a stroke of a pen, we will end the regime of Rockefeller Drug Laws," Governor Paterson said.

And with it, Paterson boosters hope to begin a turnaround for the popularity-challenged governor, all the way to next year's election.

Paterson sees the issue as key to keeping the African American base, who saw its young incarcerated for low-level crimes that instead demanded treatment.

"He fulfills a commitment that he made to us, to this community, by doing this and yes, I think it will resonate. I think people will applaud him in our neighborhoods," said Assemblyman Jeffrion Aubry.

The Governor, meanwhile, is playing a dual defense and offense, defending his budget, which raised taxes and only kept state spending roughly flat. Offense against possible challengers Andrew Cuomo and Rudy Giuliani, as in an interview Friday.

"It's his choice if he wants to run, but if he thinks he's the answer, the question must be ridiculous," Paterson said.

But additional problems threaten to bring down Paterson’s popularity even more, like the MTA’s finances, which are getting worse and where a bailout deal from Albany is not yet at hand.

One plan is stuck in the state senate, whose leader sounded less confident than ever the proposal has enough votes. Even worse, the plan, baking on a payroll tax and taxi fees, it may not be enough. And MTA officials say that and an ever-souring economy threatens to riders even more.

“And that's clearly short and so there would have to be a reconciliation in terms of what would have to occur," said Elliot Sander, MTA Executive Director and CEO.

Lawmakers return to Albany Monday.