New York Gov. David Paterson released a budget proposal Tuesday that seeks a 5 percent cut in school aid, as well as $1 billion in new taxes and fees.

The $134 billion budget also addresses a $7.4 billion deficit. In addition to a $1.1 billion cut in school aid, Paterson wants $1 billion cut from health care spending, much of which goes to hospitals and nursing homes.

He is also proposing another reduction in spending on higher education that would cut $95 million from four-year colleges operated by the State University of New York and $47.7 million from the City University of New York.

He would also allow SUNY and CUNY to set their own regular tuition increases, which could vary by campus, without legislative approval. And public and private college students would see a $75 cut in their Tuition Assistance Program financial aid.

New York City would lose $469 million in school aid, nearly $302 million in local government assistance, $53 million in funding for social services and nearly $4 million for transportation.

“The mistakes of the past — squandering surpluses, papering over deficits, relying on irresponsible fiscal gimmicks to finance unsustainable spending increases — have led us to a financial breaking point,” Paterson said. “There are no more easy answers.”

The Legislature is expected to strongly oppose the measures, in part because lawmakers believe that health cuts will harm community hospital care and that school aid cuts are likely to prompt school boards to raise local property taxes and cut programs.

The Legislature traditionally adds 1 percent to 2 percent to the state budget, but few executive proposals have cut aid to levels proposed by Paterson. He and the lawmakers will try to agree on a budget by the April 1 start of the fiscal year.

Also among Paterson’s proposals is extending the income tax benefits of filing as a married couple to same-sex couples married in states where gay marriage is legal.

New taxes include a $1 increase in the tax on a pack of cigarettes, restoring New York as the state with the highest tax on cigarettes. Paterson said the revenue will be dedicated to health care. It would raise the state tax to $3.75 per pack…

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