Lawmakers down to final few state budget issues

Also on the table: extending the so-called millionaires' tax.

Following the Albany maxim that no issues are settled until all are settled, Gov. Andrew M. Cuomo said: "I wouldn't say at this point that anything has been ruled in or that anything has been ruled out."

As they work to strike a deal, legislators said talks include possibly restoring two key cuts proposed by Cuomo. One proposal would restore about $90 million of a $120 million cut to non-profits that provide services to the developmentally disabled; Cuomo proposed the cut after federal officials reduced New York's Medicaid funding because of overbilling.

Another proposal would restore approximately $50 million in a special category of school funding called "High Tax Aid," legislators said. If not restored, Long Island districts would lose about $34 million.

In a slightly unexpected development, lawmakers are also discussing extending the millionaires' tax. Enacted in December 2011, it raised tax rates on joint filers earning more than $2 million and singles earning more than $1 million, generating $1.9 billion in state revenue. It is set to expire in 2014 - when Cuomo and all 213 legislators are up for re-election. The governor, while not directly referring to the tax, has said he wants to make some budget decisions in a two-year context.

Lawmakers also are considering phasing out a utility tax called "18-a," a temporary surcharge imposed in 2009 after the stock market meltdown. Republicans have been vocal about letting it expire this year as scheduled -- Cuomo proposed renewing it.

Though nothing was final, Senate co-leader Dean Skelos (R-Rockville Centre) said he was hopeful business-tax cuts would be included in the budget agreement.

Assembly Speaker Sheldon Silver (D-Manhattan) said Thursday afternoon he thought lawmakers could strike a deal within 24 hours. Cuomo cast doubt on that during a news conference Thursday evening.

"I don't believe we're going to have a definitive agreement in 24 hours," the governor said. Though the fiscal year doesn't begin till April 1, lawmakers are hoping to enact a budget by March 21 - the last scheduled legislative day before the Passover-Easter break. To do so, they likely would have announce a deal Sunday to honor the three-day waiting period before printing and voting on legislation.