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Gov. Cuomo and legislative leaders pose on March 30, 2012, following last year's early budget deal. Photo: <a href="">Governor Cuomo's office</a> via Flickr
Gov. Cuomo and legislative leaders pose on March 30, 2012, following last year's early budget deal. Photo: Governor Cuomo's office via Flickr

What's holding back the state budget?

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With just three weeks and one day to go before a state budget deadline, Governor Cuomo and legislative leaders met to assess how far they have to go to reach a deal.

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Reported by

Karen DeWitt
NYS Capitol Correspondent

In order to meet their self-imposed deadline of March 21 to complete a spending plan, Governor Cuomo and lawmakers will have to work through some thorny issues like disagreements over the state's minimum wage and how to expand casino gambling.

 "We have a number of issues on the table that are challenging," Cuomo said. "It's going well, but am I concerned? Yes."

We have a number of issues on the table that are challenging. It's going well, but am I concerned? Yes. --Gov. Andrew Cuomo
Cuomo has raised the possibility of leaving out the more complicated issues until later in the session, after the budget has passed. For now, neither the governor nor legislative leaders are willing to drop anything. Although Senate GOP Leader Dean Skelos says he continues to have reservations about a minimum wage hike.

"We still haven't made a decision as to whether expanding the minimum wage is going to be counterproductive to job creation," Skelos said.

Skelos spoke after a closed door meeting between the governor and legislative leaders. The Republicans co-lead the Senate with five breakaway Democrats known as the Independent Democratic Conference. Senator Jeff Klein, the leader of that group, was also at the private meeting. Senator Klein is a major backer of the minimum wage increase.

"We need to increase the minimum wage quickly, I think it should be part of the budget," said Klein who says the increase would pump money back into the economy, in the form of fatter paychecks for the working poor, and create 5000 new jobs.

Assembly Speaker Sheldon Silver, who was the first to propose the minimum wage increase over a year ago, says he's fine with either timetable, as long as the minimum wage increase happens.

The Speaker says he does have some issues with the budget proposed by Cuomo, including millions of dollars in cuts to services for the disabled announced by Cuomo's budget director a few days ago.

"I have a lot of concerns in various parts of the budget, including disabled services," Silver said.

The federal government has been charging that New York has been overbilling Medicaid for years for state-run centers for the developmentally disabled. Cuomo cut $500 million out of the state's Medicaid budget to comply. $120 million would come from services to people with disabilities, $380 million would be saved by lowering spending caps for other Medicaid services.

Barbara Crosier, with the Cerebral Palsy Association of New York State, says the six percent across-the-board cuts, combined with earlier budget cuts, would mean staff cut backs and fewer programs for people with cerebral palsy, autism, and other disabilities. She says not-for-profit providers would be made to pay for a Medicaid billing mistake that they had nothing to do with.

"We absolutely feel like we're being punished for something that we really had nothing to do with," crosier said.

Governor Cuomo says he's "open" to funding restorations in general, but he says lawmakers need to find the money.

"Everyone has a good idea on how to spend money, they're not as creative on how to find the money," said Cuomo who said he won't agree to any new taxes in the budget. "It has to come from that set amount," he said.

Speaker Silver predicts the revenue estimates, due out March 1, will find there is $400 million more than previously thought. Silver says the Assembly's budget plan , due out March 11, will restore $260 million that Cuomo cut to New York City schools after they failed to meet the governor's deadline to agree on a teacher evaluation plan.

Later in the day, the Assembly Democrats released their revenue report, and found the additional revenue amounts to $484 million.

Governor Cuomo, asked about the projections earlier, said it's "possible" that the money could be there, but not "probable".


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