Millionaire's tax called dead

ALBANY -- The so-called millionaire's tax is dead, and New York lawmakers may cement a deal on an overall state budget by this afternoon, the leader of the State Senate said Thursday after emerging from a meeting with Gov. Andrew M. Cuomo and Assembly Speaker Sheldon Silver.

Senate Majority Leader Dean Skelos (R-Rockville Centre) said the three have not reached agreements on the two main sticking points -- cuts to education and health care -- but it's clear that Democrats' call to extend an income-tax surcharge on high-earning New Yorkers is "dead."

"That's gone. It's off the table," Skelos said. "It's dead. It's not going to happen."

Skelos said proposals for a statewide property-tax cap and extension of rent-control laws in New York City also won't be in the budget. But he said he, Cuomo and Silver are close to putting the finishing touches on a deal that, among other things, would soften the blow from Cuomo's school aid cuts.

"I'm very optimistic that we're going to be able to announce a conceptual agreement, hopefully even more than a conceptual agreement," by Friday, Skelos said.

The budget is supposed to be adopted in time for the April 1 start of the state's fiscal year. By reaching an agreement today, lawmakers could begin printing bills over the weekend to allow rank-and-file members to vote next week.

Cuomo has proposed a $132.9-billion budget, which would reduce spending by $3.7 billion from the current fiscal year. If adopted, it would represent the first overall state spending cut in 15 years.

Cuomo has proposed reducing education spending by $1.5 billion and Medicaid by $1 billion, trimming state operations costs by 10 percent, limiting medical malpractice awards and closing a handful of state prisons.

Cuomo did not address the news media after the 45-minute meeting. Later, spokesman Josh Vlasto issued a statement: "As the deadline approaches, we continue to work towards an on-time, amicable resolution."

Asked whether he expected a budget agreement by this weekend, Silver told reporters: "I would hope so."

Cuomo and Skelos strongly oppose renewing an income-tax surcharge on high-earning New Yorkers that is set to expire Dec. 31. Though called the "millionaire's tax" by supporters, it actually applies to individuals with $200,000 or more in annual taxable income and families with $300,000 or more.

The Assembly has called for renewing the surcharge but raising the threshold so that it applies only to those earning $1 million or more. Silver (D-Manhattan) would not comment directly on the prospects of extending the tax.

The State Senate and Assembly have proposed restoring at least $200 million for education.

Expenses

Some items in the 2011-12 New York State budget:

$713,000

Allotted to the Wine and Grape

Foundation to promote the industry.

$200,000

Added to restart the state's

Conditional Shellfishing

Harvesting program.

$100,000

To continue the raccoon rabies control program for LI and New York City.

$134 million

For the Environmental Protection Fund.

Sources: New York State Senate and Assembly