N.Y. Budget Deal Cuts Aid to Schools and Health Care

Gov. Andrew M. Cuomo and leaders of the Legislature imposed a $132.5 billion budget agreement that would cut spending, impose no major new taxes and begin a long-term overhaul of New York State’s bloated Medicaid programs. The budget agreement is Albany's first on-time budget in five years which legislative leaders hopes to be a new road of responsible budgeting and effective government. It also fulfills one of Mr. Cuomo’s main campaign promises to avoid new taxes in addressing the state’s financial problems.

Mr. Cuomo persuaded legislative leaders to agree to a year-to-year cut of more than $2 billion in spending on health care and education- the two largest themes of New York’s ever-growing budget. Over all, officials said, the budget deal would reduce year-to-year spending by about 2 percent, the 1st time spending would decrease in more than a decade.

Mr. Cuomo and the Legislature agreed upon a merger among the Department of Financial Services, combining the existing state banking and insurance agencies. Cuomo is looking for other consolidations as well.

Cuomo agreed to add $250 million to his executive budget proposal- more money for schools; the blind and the deaf; human services; higher education; and prescription drugs for the elderly.

Two negative aspects is that the budget does not state what it will do for teacher layoffs as well as what prisons will be affected by the decrease in 3,700 prison beds.