ALBANY — A plan by Gov. Andrew M. Cuomo to cut $120 million in financing for nonprofit organizations that serve people with developmental disabilities is emerging as a flash point in this year's budget negotiations.
The Democratic majority in the State Assembly and the coalition that controls the State Senate are both planning to propose restoring the full amount of money that the governor is seeking to cut, officials said on Thursday.
"We all recognize that it's important to protect our most vulnerable citizens," the Assembly speaker, Sheldon Silver, a Manhattan Democrat, said. "These cuts would result in severe hardship and diminished services for individuals with disabilities, their families and providers."
Mr. Cuomo, a Democrat, proposed the reduction in financing two weeks ago in order to help plug a $500 million hole that emerged in his spending plan because of changes in how the federal government intends to reimburse the state for the care of people with developmental disabilities. Mr. Cuomo is seeking to reduce the reimbursement rate for nonprofit providers by 6 percent, which would save the state $120 million.
The governor's proposal came after negotiations with federal officials, who have said that the state overbilled Medicaid for years for the institutional care of people with disabilities.
But lawmakers say they are worried about the consequences of the reduction in financing. Senator David Carlucci of Rockland County, the chairman of the Committee on Mental Health and Developmental Disabilities, said he was concerned that the cut in reimbursement rates could force some agencies to shut down or scale back services.
"We can't balance the budget on the backs of people with developmental disabilities, and we've really got to focus to make sure that the cuts that we have to make are really shared throughout the budget," said Mr. Carlucci, one of five breakaway Democrats who are working with Republicans to control the Senate.
A series of articles in The New York Times in 2011 detailed abuse and neglect within the state's system. Advocates for people with disabilities have complained about the slow pace at which the Cuomo administration is putting in place improved oversight measures. They also say they are worried that budget cuts will worsen the situation.
Mr. Cuomo brushed off concerns Thursday, telling reporters, "It's not always true that more money is better results."
"I believe in many areas the state was actually spending more money than it needed to be spending," Mr. Cuomo said. "So we're going to tighten our belt, but we're still going to get our job done."
The Senate and the Assembly were aiming to release their budget plans as early as Friday. Lawmakers must adopt a budget by April 1, but they are seeking to complete a spending plan by March 21 in order to avoid conflicting with the observance of Passover and Easter.
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