CITIZEN POWER ALLIANCE

ALBANY -- Lawmakers completed a $121.7 billion state budget Wednesday that includes substantial borrowing and that budget critics say is precariously balanced on one-time revenues and more than $1 billion in increased taxes and fees.

The budget raises spending 4.9 percent from the $116 billion spent last year.

The Legislature and Gov. David Paterson agreed to split $1.28 billion for big-ticket items that will likely be supported through bonds, including $46 million for the proposed Advanced Micro Devices chip fab in Malta.

Some of the new revenues close loopholes affecting businesses, but some will hit consumers directly, such as a $1.25 increase on the per-pack tax on cigarettes and $70 million more in assessments on health insurance policies.

Paterson said the budget is imperfect and spending habits will have to change drastically, given the nation's faltering economy.

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