Gov. Andrew Cuomo and legislative leaders on Thursday announced an agreement on New York state's 2016-17 budget.

Word of the agreement came just a few hours before the midnight deadline marking the beginning of the new fiscal year.

According to the governor's office, the budget will hold the growth in state spending to 2 percent. The budget contains $24.8 billion in education aid statewide, representing a 6.5 percent increase.

The Paid Family Leave Act and a multiyear income tax cut are included, as well. For nine straight years, the New York state income tax rate will decrease for families earning $300,000 or less a year.

The plan would also increase the minimum wage for workers in Nassau and Suffolk counties to $10 an hour this year. The wage would then increase by $1 each year after that until it reaches $15 an hour by Dec. 31, 2021.

The increase was a sticking point for Senate Republicans who have said they fear that small businesses would not be able to absorb the higher wage.