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Legislative Leaders Agree on 2006-07 State Budget

By Associated Press

Albany, NY – Legislative leaders have reached a tentative agreement on a $112.4 billion budget.

The proposal would increase spending by more than $1.6 billion over Governor Pataki's proposal. And it would return hundreds of dollars in tax credits and rebate checks to most New Yorkers.

Legislative leaders also tentatively recommended a 6.9 percent increase in school operating aid statewide.

Legislative leaders hope to have budget bills ready for a vote by Friday, the last day of the fiscal year. If approved, the legislative budget would be the second on-time budget approved in two years after 20 years of late budgets.

But the budget process isn't over. Legislative leaders are expected to negotiate with Pataki over the next two weeks on a final budget. Pataki could veto elements of the Legislature's budget. He says the Legislature is trying to spend too much.