Pataki Budget Reducing Aid to Disabled
By MARC SANTORA and AL BAKER

ALBANY, Jan. 18 — Thousands of low-income households with a disabled family member stand to lose part of their public assistance benefits because of a proposed change in state regulations intended to save New York State $9 million, according to Pataki administration officials.

In his budget address on Tuesday, Gov. George E. Pataki plans to include those savings along with other cuts to help deal with the state's estimated $5.1 billion budget deficit for the fiscal year that starts April 1, an administration budget official said.

"There will be cuts in the budget," said the official, who would speak only on the condition of anonymity. "The economy is starting to come back, but make no mistake, the state faces a $5.1 billion deficit. You have to cut spending to close that gap."

The change does not require legislative approval, but because Governor Pataki plans to include the $9 million savings in his budget, legislators will have a chance to address the issue and perhaps to restore the money.

The proposal came as a surprise to many legislators, as well as advocates for the disabled and independent experts, who said that only a handful of states had tried a similar change.

In addition to the $9 million in state savings, local governments across the state would also save a total of $9 million, the administration said in its proposal, a copy of which was provided to The New York Times by an opponent of the change.

In a state budget of more than $90 billion, the total savings would be minimal but at least 26,700 families, many in New York City, could be affected, according to an "impact statement" included with the proposal that was confirmed with an administration official.