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Albany deals: Legislature pushes closing agenda as Paterson vetoes school spending

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Aid to schools and member items are still up in the air.

NY_State_Budget_NYMG103.JPGA stack of Gov. David Paterson's disputed budget bills rests in a hallway outside the Assembly Monday after a counsel in the Assembly refused delivery at the Capitol in Albany.

Gov. David Paterson and the New York State Legislature wrestled Monday over school aid, Medicaid funding and other issues as they tried to enact the final pieces of a $136 billion budget.

Their struggle carried past Paterson’s Monday “deadline,” which was nearly three months after the official April 1 deadline.

In the final hours, the legislators decided several contentious issues. The governor, however, said he’d veto all budget additions — and started late Monday by vetoing a bill which would have restored $600 million in school aid.

So, several issues have been decided, but others remain to be worked out through vetoes and attempts to override vetoes. Here’s where things stood late Monday:

DECIDED

No wine in grocery stores; no soda tax
Paterson included these provisions in his latest proposal to raise revenue and boost the wine industry, but the Legislature rejected both.

State university tuition decisions
The governor wanted to “empower” the public universities with more autonomy and the authority to raise tuition by up to 8 percent annually over the next four years. The Legislature rejected that plan.

More sales tax on clothing
The governor and Legislature leaders agreed to eliminate the sales tax exemption on clothing and shoes costing under $110. The exemption will end in October, then return April 1, 2011. Clothing and shoes worth under $55 will be exempt April 1 to March 31, 2012. The Legislature is scheduled to vote on this today.

More gambling
The governor and legislators agreed to expand the hours of the Quick Draw gambling game run by the Lottery Division and reduce the percentage of winnings that go to Quick Draw operators. The Legislature is scheduled to vote on this today.

Limit or cap business tax breaks
The Legislature’s budget caps or delays an array of business tax breaks and shortens the period after which the state can seize abandoned property. The Legislature is scheduled to vote on this today.

No cap on property taxes
The Assembly and Senate rejected Paterson’s proposal to cap the growth on local property taxes, including school taxes, to about 4 percent a year.

STILL UNDECIDED

Aid to public schools
Paterson’s original plan called for a $1.4 billion cut to school aid to help close a $9 billion deficit. The governor Monday was prepared to restore $400 million. The Legislature voted to restore $600 million. Paterson vetoed that spending. An override was uncertain.

» Central New York schools wait for dust to settle on budget cuts [The Post-Standard]

Member items
Paterson has threatened to veto $193 million in member items that legislators included for projects in their home districts, an important element for those seeking re-election this year. The $193 million in grants had been approved in prior years’ budgets, but not spent.


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