N.Y. Lawmakers, Cuomo Reach Budget Accord

Gov. Mario M. Cuomo and legislative leaders said Saturday they had reached an agreement on a budget for the next fiscal year. They didn’t say how they would close a projected deficit of more than $4.8 billion.

The lack of a budget agreement forced Cuomo to forgo entering the Democratic presidential race Dec. 20. It also caused Moody’s Investors Service to lower the rating on some state bonds.

The proposed budget for the fiscal year beginning April 1 must be approved by conferences of Assembly Democrats and Senate Republicans, which were to meet tonight.

If the conferences approve the budget, the full Legislature would then vote on it, possibly on Monday or Tuesday, Cuomo said.

Senate Majority Leader Ralph Marino, a Republican, and Assembly Speaker Saul Weprin, a Democrat, both said they were optimistic their members would approve the deal.

If spending and revenues had continued at last year’s rates, the budget would have been more than $4.8 billion in the red. The total budget is expected to top $56.5 billion.

Cuomo refused to provide details of the budget but said it was fair and contained “no gimmicks.” Previous New York budgets have been criticized for financial maneuvers that could increase the state’s debts in future years.

Cuomo and the lawmakers had already agreed to postpone a scheduled decrease in corporate and personal income tax rates. Legislative sources, speaking on condition of anonymity, said the budget includes new taxes or fees for commercial health insurers, banks and special license plates.

Cuomo and the legislative leaders have been negotiating for five months. They met daily over the past two weeks.