New York state leaders outline budget deal

New York Gov. David A. Paterson and leaders of the Legislature outlined a $131.8 billion agreement that would close the state's gaping deficit with billions of dollars in new taxes, financing from the federal stimulus and a substantial slowdown in the growth of healthcare spending. Paterson said the budget would include $6.5 billion in recurring spending reductions, including major savings wrested from New York's large and politically potent healthcare sector.