Albany turns attention to OKing NY budget

ALBANY -- After a deal was struck and passed on major policies last week, Gov. Andrew M. Cuomo and the State Legislature have turned to negotiating a $132 billion state budget before the April 1 deadline.

More than two-thirds of the budget is already settled. But some thorny issues remained open Monday, including whether to enact a new state health insurance marketplace called an "exchange" under President Barack Obama's health care program.

Cuomo and the Senate Republican and Assembly's Democratic majorities have already agreed to 4-percent increases in school aid and health care. That agreement was made a year ago to soften reaction to the cuts in the current budget, which expires March 31.

"I don't think there are any major obstacles," said Senate Majority Leader Dean Skelos (R-Rockville Centre). He said he expects a "framework" of an agreement this week and passage next week, before April 1.

Cuomo proposed a $132.5 billion budget in January. Senate Republicans want to spend a little less, Assembly Democrats want to spend a little more. The budget will include a higher income tax on millionaires passed in December to raise $2 billion that will pay for a tax cut of between $200 and $400 for most middle-income families.

But within that total, there are differences among the leaders. Cuomo had wanted to use $250 million of the $800 million increase in school aid for competitive grants to reward performance and innovation. But Assembly Speaker Sheldon Silver (D-Manhattan) says most of that should be returned to general school aid, where the neediest school districts get a larger share of the money.

Legislators want to set aside $750 million of the increase for general school aid. That would leave Cuomo with $50 million for the competitive program, which is what he secured for the current fiscal year.

Another sticking point is whether New York creates a health insurance exchange, aimed at enabling the uninsured to shop for coverage at competitive rates, under the Obama administration's health care plan, a major campaign target for Republicans in the presidential race.

The state Senate's Republican majority didn't include health exchanges in their budget proposal, saying more study is required. Cuomo and the Assembly Democrats favor the plan to create a kind of one-stop supermarket for health care to insure more Americans.

If the state doesn't approve a health exchange with federal funds within months, the Obama administration will create one.