Here’s some of the comments coming in about the 2009-10 budget.

Senate Minority Leader Dean Skelos, R-Nassau County: “Governor Paterson and I agree on one thing – this budget doesn’t make sense. The governor’s moment of candor during his news conference today was honest and appropriate because this budget doesn’t make sense for the people of this state, no matter how the Governor tries to spin down the impact of massive tax hikes and runaway spending.”

Andrew Scherer, executive director of Legal Services NYC: “Because state leaders had the courage to ask wealthy New Yorkers to do their part and pitch in during this critical time, they were able to restore funding to civil legal services for thousands of New Yorkers facing foreclosure and eviction, seniors struggling to get their SSI benefits, and New Yorkers fighting to get unemployment, disability, welfare, and other benefits.”

Josh Cohen, NY Library Association president and Director of the Mid- Hudson Library System in Poughkeepsie over cuts to libraries: “Library usage is up by double digit numbers and yet state aid continues to be cut. There appears to be a disconnect somewhere in the state budget process.”

Brian Sampson, executive director of Unshackle Upstate: “We are in the midst of an economic crisis of major proportions. Rather than take progressive steps toward making New York more business-friendly to spur private sector investment and job creation, this budget does the opposite.”

Daniel Sisto, president of the Healthcare Association of New York: “This health care budget plan contains cuts far greater than what our members can absorb without reducing services and laying off staff. We are therefore compelled to issue to the State Legislature a memorandum of opposition to the plan.”

Gov. David Paterson said “none of this makes sense” when it comes to raising fees and taxes, limiting growth in aid to schools and health care and threatening job cuts. But he said the state’s budget deficit grew to $17.7 billion, so the moves had to be made.

He rejected that the budget raises spending by nearly 9 percent over what he proposed in December (even though that’s what his office said in a press release yesterday), saying a bulk of the roughly $10 billion in spending is through money from the stimulus package, which comes to about $6 billion.

He said the rest is mainly through higher costs for Medicaid and social-service programs.

“None of this makes sense,” he said when asked if the new taxes and fees make sense in the face of the state’s economic woes. “We don’t want to tax the wealthy, we don’t put these taxes in to raise fees, we don’t want to hold our school budgets at zero increase at a time when our children need education. We don’t want to in any way jeopardize anyone’s ability to get health care.

“We don’t want to lay workers off. It’s a response to a crisis.”

Senate Majority Leader Malcolm Smith, D-Queens, said “this is not a happy budget” and defended the need to negotiate the budget behind closed doors, saying “Difficult times call for different approaches” but that transparency is still important.

“I’m not happy about all the things we had to do in this budget. But what I am pleased about is that we were responsible,” Smith said. “We made the tough choices.”

Senate Republican Leader Dean Skelos, R-Long Island, fired back with a news release this afternoon saying that the budget will mean an upstate family of four will have to pay about $2,400 more a year in higher state taxes and fees as a result of the budget, while in New York City and the surrounding suburbs, a family will pay $4,700 to $5,000 more.

You can watch Gov. David Paterson explain the reason for at least $5.3 billion in new taxes and fees and a nearly 9 percent spending increase as part of the state budget today at 11 a.m. here.

Despite falling tax revenues and a bleak economy, Gov. David Paterson and state lawmakers have agreed on a 2009-10 budget that will increase state spending next year by nearly 9 percent, or $10.5 billion, officials said Sunday.

Helping to pay for it is $5.3 billion in new taxes and fees and $6.2 billion in federal stimulus money, which accounts for a bulk of the higher spending.

Lawmakers are expected to vote to approve the whopping $131.8 billion package Tuesday and Wednesday. The new fiscal year starts Wednesday, so it appears all the bills won’t be passed on time.
Paterson and the Democratic leaders who control the Legislature praised the plan as one that closes a huge potential budget gap of $17.7 billion, retains essential services and cuts future deficits by 80 percent.

“We have produced a budget that provides a solid foundation to move forward and address the challenges ahead,’’ said the Democratic governor, who has been heavily criticized by special-interest groups for cuts to education and health care.

Republicans blasted the budget as bloated and wasteful, saying it only adds to New Yorkers’ tax burden and hurts the sagging economy.

“The end result of the most secret budget process in state history is a plan that taxes too much, spends too much and does nothing to create jobs,” said Senate Minority Leader Dean Skelos, R-Nassau County, who said, “The New York City Democrats went nuts on taxes and spending.’’

Details of the spending plan emerged Sunday after weeks of feverish behind-closed-doors negotiations among Paterson and legislative leaders, who claimed they could not have made tough decisions if the public was watching. The lack of transparency has drawn criticism from good-government groups.

Among the budget highlights:—Higher income taxes on married taxpayers who make more than $250,000 and some single taxpayers who make as low as $200,000. The rate will go up to 7.85 percent, from the current 6.85 percent, on all adjusted gross income over $250,000 and under $500,000 for those taxpayers. Income above $500,000 would be taxed at 8.97 percent.—No increase in operating aid to local school districts, but about $800 million more in federal aid for special-education programs.—Higher taxes on utility bills, some insurance policies and beer and wine and higher charges to register vehicles and renew drivers’ licenses, totaling about $1.3 billion.—The elimination of the STAR property-tax rebate program, costing residential property taxpayers $1.5 billion.—Imposition of a nickel deposit on bottles of water, with the state keeping 80 percent of the roughly $100 million in revenue.—Cuts of $2.3 billion to health care – less than the $3.5 billion Paterson originally proposed.—A cut of 8,900 state workers, mostly through layoffs, starting in July. The workers are slated to get a 3 percent raise on April 1.

A 2009-10 state budget was expected to be printed late Saturday in an effort to get it passed by Tuesday’s deadline, with lawmakers planning to increase income-tax rates on individuals who make more than $250,000 and households with incomes of more than $300,000 a year.

Without releasing the details publicly, legislators and Gov. David Paterson have coalesced around a plan to raise $4 billion in revenue through new income-tax brackets ranging of $250,000 and $500,000, according to lawmakers and aides.

The agreement, which some officials warned was still subject to change before the final budget bills were adopted, closely mirrors a proposal put forth by Assembly Democrats last week as a way to help the state close a $16 billion budget gap in the 2009-10 fiscal year, which starts Wednesday.

The plan is part of hundreds of pages of budget bills that legislative aides and the governor’s office were hoping to print Saturday night, allowing them to age three days in order for passage starting Tuesday at the Capitol.

The governor’s office declined Saturday to discuss the details of the budget. Budget negotiations have been conducted behind closed doors, drawing criticism from good-government groups and Republicans, who are in the minority in both houses of the Legislature.

“All parties have been working hard to finalize the budget and to begin the printing process so it can be voted on starting Tuesday,” said Jeffrey Gordon, a spokesman for Paterson’s budget office.

Raising income taxes on the wealthy has been pushed by Democratic lawmakers for months, but Paterson had resisted, saying it would lead people to flee the state and wouldn’t help the economy rebound.

Yet the Democratic governor in recent days said the state’s fiscal woes are expected to worsen and signaled a change in position, saying Friday that any further cuts to services would be “life threatening.” He warned that the state’s budget gap may still grow by another $3 billion.

Raising income taxes is expected to be among a variety of new taxes and fees to help close this year’s budget gap. State leaders have agreed to using about $6 billion in federal stimulus aid to close the gap, as well as making cuts of about $6.5 billion, according to state officials.

After initially being met with opposition, a plan to charge a 5 cent deposit on bottles of water was also added back to the budget, which is estimated to bring in about $100 million in revenue to the state. A portion of that revenue is expected to be used to replenish a fund dedicated to environmental initiatives, officials said.

Senate Democrats broke from conference this afternoon to float a new proposal to increase income taxes on the wealthy, this time coupling it with property tax relief for the middle class, some senators said.

The latest proposal calls for raising $5 billion annually from higher income taxes—instead of $4 billion—by increasing the tax bracket on those who make more than $1 million.

The extra $1 billion in revenue would be used to start a circuit breaker program, which would tie property taxes to household income and provide some relief to households who make less than $200,000.

Some Senate Democrats continue to push for some tax relief to the middle class as part of income-tax increase on wealthy.

Assembly Democrats have proposed increasing the current top income tax rate from 6.85 percent to 7.97 percent for individuals or households with incomes higher than $300,000; 8.47 percent on incomes of $500,000; and 8.97 percent on more than $1 million.

The Senate plan would start at incomes of $350,000, yet the top tax rate would be around 10 percent—closer to what was proposed by the Working Families Party.

Sol Wachtler, the former top New York judge who had to quit his post in 1993 after he admitted intimidating a former lover and threatening to kidnap her daughter, had some wisdom to impart in a radio interview today.

“One sign of getting older is that dreams are replaced by regrets,’’ Wachtler, 78, said in an interview on Talk-1300 in Albany. “I’ve had plenty of regrets.’’

Wachtler, who blamed his conduct on mental illness, served 11 months in prison.  He is now teaching law and has become a well known advocate for the mentally ill.

The Nassau County resident was chief judge of the Court of Appeals from 1985 to 1993 and was a serious contender for the Republican nomination for governor in 1988 and 1992.

In 2006, after then-Gov. George Pataki’s State of the State address was short on reform measures, it was then-Senate Democratic minority leader David Paterson who said the governor apparently had a case of “amnesia” in regard to reform.

“My fear is that the Albany response to the demand for reform would be to pass one on-time budget and make legislators sit in their seats to vote,” Paterson said that day.

Now Governor Paterson is trying to get an on-time budget and was asked today about why the state budget process has been the most secretive in many lawmakers’ memory, drawing criticism from reform groups.

“I think there should be transparency in terms of process and openness in terms of government,” he said. “However, when you are in budget position it is very hard to negotiate in public. You never see President Obama, and Senate Reid and Speaker Pelosi do it. You don’t see it in any other state.”

He continued that “I dare say the negotiations with your own media outlets, your contracts are not, last I checked, publicly observed.”

Paterson said the closed door negotiations are necessary to get a deal.

“These are some painful decisions that have to be made. And we plan on having meetings with the committee chairs and being very open and transparent on the agreement which comes before the vote on the legislation,” he said.

While it appears an effort to put wine in grocery stores is stalled, the sides continue to battle over its merits.

Supporters of the plan delivered this week 70,000 postcards to lawmakers in support of letting convenience stores and supermarkets sell wine.

Meanwhile today, a group called The Last Store on Main Street today announced that more than 100,000 signatures and postcards were sent to Gov. David Paterson and legislators in opposition “to the governor’s job-killing plan to legalize the sale of wine in grocery stores, gas stations, delis, bodegas and anywhere beer is now sold.”

And Daniel Sisto, head of Law Enforcement Against Drunk Drivers, wrote this letter to Wegmans CEO Daniel Wegman over the supermarket chain’s push to let grocery stores sell wine. The group is concerned that allowing wine in grocery stores would lead to more drunk driving.

As lawmakers grapple with the numbers on raising incomes taxes on the wealthy, Assemblyman Richard Brodsky, D-Greenburgh, Westchester County, has decided to carry legislation that would use a bulk of the revenue to provide property-tax relief to the middle class.

The legislation, first proposed by Sen. Jeff Klein, D-Bronx, would raise about $3.5 billion through raising income taxes on those who make more than $500,000. About $2.5 billion would go back to homeowners in the form of a circuit breaker, which would lower property tax bills by tying payments to household incomes.

“We’re making the tax bill more progressive That is itself a good thing, but what we ought to also be focusing on is tax relief,” Brodsky said. “And the most important place to focus tax relief is on middle-income families who pay unbelievable property tax bills.”

Some Senate Democrats have pushed to have property-tax relief as part of any income-tax increase, either through a circuit breaker or a STAR tax rebate check.

The problem, though, is whether the state can afford to use much of the revenue from a income-tax increase on tax relief instead of helping to close the state’s $16 billion deficit.

“We’re working cooperatively with everybody,” Brodsky said. “There’s lot of good ideas out there. We’re going to do our best.”