I loved seeing Dick Eastman's post a couple of days ago, "More Than Two Million Northern New York Historical Newspapers Online," in which he points users to the Northern New York Library Network's historical newspapers site.
NNYLN is part of New York's NY3R's system. Various of the 3R's networks have being doing great things in digitizing their regional heritage over the years. The projects are also expanding across the state, with other regions beginning to digitize their own local papers.
The New York Heritage site seems to be becoming a gateway to the partnerships evolving in these efforts. (I don't know that it's an official gateway, but many of the 3R's are cooperating in its ongoing development.)