No New York State Budget; City Reads It: ‘Drop Dead’

Gov. Mario M. Cuomo and the Legislature failed to produce a new state budget Saturday, missing a deadline that New York City officials had said amounted to a “drop dead” message from state government.

“This is foolish,” said Cuomo, who has blamed the Legislature for the late budget. “You’re punishing the state, you’re hurting the city.”

Holding up an agreement between the Democrat-controlled Assembly and the Republican-controlled Senate were the issues of how much to raise in taxes and how much to cut from Medicaid and welfare spending.

“We’re making progress but we’re not there,” Senate Majority Leader Ralph Marino said after a meeting with Cuomo and Assembly Speaker Mel Miller, both Democrats.

With negotiations at a standstill, the Assembly held a rare Memorial Day weekend session to pass its version of a partial state spending plan.

The action was largely symbolic because the bills do not have Senate approval. Budget bills, like other legislation, need the endorsement of both chambers and, in most cases, the governor.

“It’s a lot of activity that adds up to nothing,” one top New York City official said of the Assembly vote. “It’s a lot of bluster.”

The official, who insisted on anonymity, said budget negotiations had degenerated into a “little morality play” as the sides tried to dramatize their bargaining positions.

The bottom line of all the machinations was that New York state still does not have a budget, a record 55 days after it was due. This is the seventh consecutive year that a budget has been delayed beyond the April 1 start of the fiscal year.

Without a budget in place, the state cannot make huge aid payments due to school districts and local governments each spring.

New York City has already borrowed $1.25 billion because of the delay, and Mayor David N. Dinkins told his aides Friday to prepare to borrow another $3 billion.