ALBANY - Gov. Andrew Cuomo's (D-N.Y.) plan to reduce the size of not only state government, but local governments as well, could have wide-ranging impact on Long Island.

During the new governor's State of the State speech yesterday, Cuomo proposed a pay freeze for some state employees and a property-tax cap. He also proposed offering cash incentives to municipalities that downsize.

Kevin Law, president of the Long Island Association, says Nassau and Suffolk counties would benefit from that proposal.

"With some of the work that's been done already with school districts sharing programs to reduce expenses, and with LIPA's green initiatives, I think Long Islanders will be well-situated to take advantage of those new programs," Law says.

The governor will present his first budget in three weeks.

LI Talks: Gov. Cuomo's State of the State address