Gov. Andrew Cuomo today unveiled his 2012-13 spending plan, saying his proposal will help shape a new future for the state. The governor's proposal includes no tax hikes, although it would increase state spending by 2 percent, or about $89 million. The overall plan would eliminate New York's $2 billion deficit, Cuomo says, by using $1.9 billion in revenue from the "millionaire tax" approved last month and making over $1 billion in cuts. After slashing aid to schools around the state last year, Cuomo's budget includes a modest 4-percent raise in school aid for this year. Political analysts say those funds would be directed to low-income districts, meaning most Long Island schools wouldn't benefit. The governor's spending plan would also have the state pick up a larger share of Medicaid costs, which would lower the amount that counties on Long Island would have to pay. The budget proposal would also merge some state agencies and implement a less costly pension tier for new hires, which Cuomo says would save state and local governments billions of dollars in employer payments.AP wire services contributed to this report.

To watch video of Cuomo's speech on his budget proposal, go to channel 612 on your iO digital cable box and select the 'iO Extra' tab.