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February 2, 2011

New York Governor Cuomo Proposes Slight Cuts to Education Spending

Jacob Gershman:

Mr. Cuomo's plan, particularly his hard line on public-school spending, drew criticism from teachers' unions and Democrats, who control the Assembly.

The budget would lower total spending on education and Medicaid to levels slightly below current-year amounts. For local governments that relied on stimulus money, the governor's budget will feel like a bigger cut. The budget pain is especially tough for New York City schools, which would see state aid cut by hundreds of millions of dollars.

The governor's plan would freeze higher-education spending and general aid to localities. He also seeks to squeeze $1 billion out of state agencies. Spending on public employee pensions, health insurance and other benefits would increase by $474 million, an 8% rise over the current fiscal year.

Mr. Cuomo, who has said he wants to create a lower-cost pension for new employees, did not include such plans in his budget, saving the battle for another day.

Posted by Jim Zellmer at February 2, 2011 4:14 AM
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