Assembly Speaker Sheldon Silver said late Saturday that New York's Legislature has agreed to a state budget that keeps school funding flat, restores aid to New York City, and increases income taxes on wealthier New Yorkers.
The agreement announced just before midnight Saturday also restores some proposed cuts in health care and higher education and expands the state's bottle law, putting nickel deposits on bottled water under the measure that currently covers only carbonated drinks.
The powerful Manhattan Democrat told The Associated Press that the spending plan will likely be adopted Tuesday, resulting in an on-time 2009-10 budget.
There is no total yet for the budget but it will include $5 billion in spending cuts and use $5 billion of the federal economic stimulus package to help fill some of the gaps created by rejecting increases in some other taxes and fees.
The temporary income tax increase on New Yorkers making more than $300,000 is projected to provide the state $4 billion in revenue and will end after three years, Silver said.
"This is a very difficult budget that reflects the extraordinary challenges we face," Silver said, noting the budget gap was estimated at $16.5 billion.
Among the few new programs is a $50 million fund to provide low-interest college loans to middle class and lower income families.
