New York’s $1.6 billion budget deficit is history as state legislators reach a deal to close the gap.

Paterson says he’s happy the legislature was able to close the gap, without following other states and waiting for federal assistance.

The agreement doesn’t come without tough decisions though, especially for state university students who will sustain a 14 percent tuition increase.

The SUNY system will see a $310 increase this semester and a $620 jump for the next full academic year, which will net the state $184 million.

The deal will also increase certain healthcare fees, and scale back on grants for local government efficiency and arts programs.

In addition, the state will reduce its environmental protection fund and divert money from member items and a planned statewide wireless network.

Despite the cuts, Paterson says he didn’t want to wait for Washington to send rescue funds to cure the state’s ills.

“The $1.6 billion in cuts were not made by factoring in any resources coming from an economic stimulus package. This is happening a lot around country, I don’t understand how you can budget with resources that you haven’t received. It’s not that it might not be inevitably accurate but in my opinion it just sets a bad tone and we didn’t do it,” said Paterson.

The governor added that of the $1.6 billion cut, half of it is recurring revenue, so the total has been cut to by 16 percent, eating into next year’s deficit as well.

(Source: NY1)