BUFFALO (AP) - Some New York residents are challenging the state's economic-incentive practices.

A lawsuit filed in state Supreme Court in Albany Monday contends that New York's policy of offering cash grants to attract private businesses violates the state constitution. Buffalo lawyer James Ostrowski, founder of the watchdog group Free New York, drafted the suit on behalf of 46 taxpayers.

The suit's plaintiffs want a judge to bar Gov. David Paterson and other state officials from giving away state funds in the name of economic development. They also want companies that have received grants in the last four months to pay them back with interest.

A spokesman for the governor said the office hasn't been served the lawsuit and declined comment.