James T. Madore of Newsday writes -”A deal has been reached on the 2009-10 budget that maintains school aid at this year’s level, eliminates the popular STAR property-tax rebate checks and temporarily raises income taxes on households earning more than $300,000.

Gov. David A. Paterson and leaders of the legislative majorities are rushing to meet Wednesday’s start of the fiscal year. Nine budget bills now must pass the State Senate and Assembly, with voting to start tomorrow.

The spending plan totals a record $131.8 billion, up 8.7 percent from this year. The increase, far above the inflation rate, is mainly driven by federal stimulus money that must be spent immediately.

Because details remained murky, it could not be determined last night whether the 2009-10 budget reduces spending to a sustainable level once the stimulus cash is gone in two years and with diminished revenue from Wall Street. In December, Paterson warned that school aid and the Medicaid program, which account for more than half of state expenditures, must be pared back. Yet, many of his proposed cuts aren’t in the new budget.”
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Kenneth Adams, president and CEO of the Business Council speaking about the budget told Madore, “The budget’s increased taxes and spending would “guarantee that this state is the last to recover from the recession. … They have defied economic common sense.”