New York – State Senate, Assembly Strike Back in Budget Battle

New York – After New York languished for 87 days without a state budget, Assembly Speaker Sheldon Silver and Senate Democratic Conference Leader John Sampson announced today that the state Legislature reached a joint budget agreement, in an effort to avoid a government shutdown.

The Assembly and Senate are joining together to challenge Gov. David Paterson’s plan to force a settlement of the state budget that’s nearly three months late.

In response, Paterson is ordering a special session for Sunday. The Legislature will have to consider parts of Paterson’s plan rejected in Saturday’s agreement between the Senate and Assembly.

The Senate and Assembly on Saturday agreed to restore $600 million to school aid, twice what Paterson called for on Friday. The Assembly and Senate also rejected Paterson’s plan to give greater autonomy to the public university systems, including the authority to raise tuition without Albany’s approval.

The Legislature’s action could block Paterson’s plan to force the Legislature to vote for his budget plan Monday or shut down government.

The agreement restores $600 million to state school aid and $683.8 million in health cuts and that were proposed by Governor David Paterson. It also restores $46.8 million of the governor’s Medicaid cuts.

Legislative leaders said a portion of the restored state school aid would go for “meaningful property tax relief,” but Paterson has previously opposed such a proposal.

The governor promised to pass a state budget deal by Monday and had included elements of his budget proposal an emergency extender bill that lawmakers would take up Monday to keep state government running.

In the absence of a three-way deal, Paterson will be effectively forcing lawmakers to choose between accepting his budget proposals or shutting down state government.

The extender bill includes a number of controversial provisions, including a temporary repeal of the sales tax exemption on clothing and a measure to allowing the sale of wine in grocery stores, (as was reported here on Vos Iz Neias), and the ability for the State University of New York and the City University of New York to set their own tuition increases.

Paterson’s proposal does not include borrowing or a so-called “soda tax” on sugary drinks.

Governor Paterson is calling for a special session of the Legislature Sunday. The governor’s announcement comes after the Senate and Assembly announced they had reached a deal on education and healthcare, the two largest remaining portions of the state budget.

The legislation introduced by the Senate and the Assembly goes along with many of Paterson’s proposed cuts and ensures the state government will keep running.

Both houses need to pass the bills Monday and then they would go to the governor for his signature.

Paterson issued the following statement Saturday:

“What is clear is that the Legislature has not introduced any revenue actions, which are necessary to balance and complete the budget. In typical Albany fashion…the Legislature is touting its spending and restorations to the governor’s proposed cuts, while failing to provide a way to pay for them.”