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State Senate, Assembly Prepare to Pass Conflicting Budget Plans

By DNAinfo Staff on March 15, 2011 4:51pm

New York Gov. Andrew Cuomo, left, gives copies of his State of the State address to Senate Majority Leader Dean Skelos, center, and Assembly Speaker Sheldon Silver in Albany, N.Y., Wednesday, Jan. 5, 2011.
New York Gov. Andrew Cuomo, left, gives copies of his State of the State address to Senate Majority Leader Dean Skelos, center, and Assembly Speaker Sheldon Silver in Albany, N.Y., Wednesday, Jan. 5, 2011.
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AP Photo/Mike Groll

By Jill Colvin

DNAinfo Reporter/Producer

MANHATTAN — The state Senate and Assembly are expected to pass their own versions of the budget Tuesday, paving the way for a showdown as they seek to reach agreement by April 1.

While both houses want to restore a portion of education aid, there are also key differences, including the Assembly's plan to extend the so-called "millionaire’s tax," which Gov. Andrew Cuomo opposes.

Cuomo's budget, unveiled last month, included a $1.5 billion reduction in school aid as part of a nearly 3 percent reduction in overall state spending.

"Today's passage of our Senate budget puts us on a path to strengthening New York this year and for the future," Senate Majority Leader Dean Skelos said in a statement ahead of the Senate’s vote. "By controlling spending, reducing taxes and focusing on helping the private sector create jobs, Senate Republicans have shown that we’re listening to the calls of hard-working, middle-class New Yorkers and their families."

The Senate's version of the bill includes a proposal to modify the "last in, first out" teacher firing policy as well as $280 million in additional school aid — about 9 percent more than Cuomo's proposed budget, State Sen. Liz Krueger said. Most of the money will go to districts upstate, the majority leader’s office said in a statement.

The bill also allows the sun-setting of the so-called “millionaire’s tax" that applies to incomes over $200,000 a year.

The Assembly’s version of the budget bill includes plans to restore the services that had been cut in Cuomo’s proposal, including the restoration of funding for senior centers and community colleges.

It also breaks with the governor by calling for an extension on the "Millionaire's tax," to be applied to taxable incomes of $1 million or more.

Despite their difference, Assembly Speaker Sheldon Silver said he was confident that both sides could reach an agreement.

"I am committed to working with the Governor and the Senate to pass an on-time budget that addresses New York’s fiscal crisis while protecting the most vulnerable in our society," Silver said in a statement.

If an agreement is not reached, the state will once again be faced with temporary extensions and threats of government shutdown.