By MEREDITH KOLODNER

Reactions to Governor Spitzer's budget from city education and state unions ranged from tepid to satisfied, with officials acknowledging the tough economic times but expressing disappointment over the scaling back of some of last year's promises.

GOVERNOR SPITZER: Reduced school aid hike.

City schools will still see an increase in operating aid, but it will be about $100 million less than was previously pledged as Mr. Spitzer struggles to close a $4.4-billion deficit. The state workforce will increase by more than 500, but some facilities are closing and there is the specter of privatization of the state lottery system.

More than $9.3 billion is earmarked for structural improvements to the city and state university systems over the next five years, but funding for the promised 2,000 new Professors is linked to the establishment of a $4-billion endowment from leasing the Lottery, which may not allow for speedy hiring.

United Federation of Teachers President Randi Weingarten praised the Governor's continuation of record education aid. "Even so, this budget has to be viewed in the context of the four-year Campaign for Fiscal Equity agreement, which calls for kids in low-performing schools to be held harmless from such economic uncertainties," she said in a statement.

FREDERICK G. FLOSS: Uncertainty rankles.

The budget reduces the amount of money to the city known as foundation aid from the expected $528 million to $335 million. Even though other grants would reduce the shortfall to about $100 million, only the foundation aid must be spent on high-needs, low-performing schools focused on five priorities, including lowering class size and improving middle schools. "We look to the Legislature to restore these funds in order to maintain the integrity of the Campaign for Fiscal Equity agreement," said the UFT president.

Foundation aid statewide would increase by $890 million, instead of the expected $1.24 billion.

CSA Credits Spitzer

Council of School Supervisors and Administrators President Ernest Logan was less critical of the budget. "The Governor and his administration deserve a lot of credit for putting forward a respectable budget in a difficult fiscal climate," he said in a statement. "We hope to continue that momentum by working with the Governor and Legislature in the next few months to build on today's education projections."

DANNY DONOHUE: 'Spreads the pain broadly.'

CSA officials were especially pleased that the proposal included a task force to evaluate school leader and supervisor preparation. It would be charged with recommending new professional development programs and services.

The $4-billion endowment would help to pay for more full-time faculty, among other priorities, and would be funded by leasing the state lottery system. The budget does not contain any tuition hikes and would increase financial aid for veterans returning from combat. Community colleges would lose base operating aid by $50 per student.

Officials from the Professional Staff Congress praised the Governor's continued emphasis on higher education. "The budget is the beginning of a process, and as always we will be very active in that process," said Professional Staff Congress President Barbara Bowen. "Our expectations are high this year because the Governor gave such prominence to higher education in his State of the State address."

ERNEST LOGAN: A 'respectable' proposal.

She said that the union was studying the endowment proposal to understand the possible timeline for hiring new Professors. "We feel that the new hiring must begin immediately," Ms. Bowen said, noting that CUNY would need at least 4,000 new full-time faculty to bring the student-teacher ratio to what it was in the early 1970s when enrollment was about what it is today.

UUP: No Fuel for Engine

United University Professions Acting President Frederick G. Floss was sharper in his criticism, arguing that the use of a currently non-existent endowment made the hiring of new faculty too precarious. "We applaud the Governor for recognizing the need to invest in SUNY and CUNY over the long term, but it must also do so over the short term," he said in a statement. "The lack of state budget funding for more full-time faculty leaves New York's economic engine with no fuel."

State unions reserved judgment on the budget, saying they were still studying its implications, including the almost-$1 billion worth of health-care cuts. They also expressed reservations about the previously announced shuttering of several Department of Correctional Services and Office of Children and Family Services facilities.

"Governor Spitzer has proposed a state budget that spreads the pain broadly in response to a challenging fiscal situation," said Civil Service Employees Association President Danny Donohue. "CSEA certainly has some serious concerns about health-care funding and will be focusing immediate attention on that area."

Officials from the Public Employees Federation said they were "satisfied" with many aspects of the budget, in particular the 392 new jobs in the state Department of Transportation for bridge maintenance and inspection personnel and the 152 positions at the Office of Mental Retardation and Developmental Disabilities to develop programs designed to reduce violence in the workplace.

'He Values Workforce'

"It's clear the Governor recognizes the value that the state workforce represents to the state's taxpayers and the savings that can be realized by replacing high-priced private contractors with lower-cost state employees," said PEF President Ken Brynien in a statement.

He added that the union would continue to press to further reduce the state's use of private contractors and said he was "awaiting details" of the Governor's plan to increase revenues from the state Lottery.

As part of the administration's effort to reduce the projected deficit, the budget includes requiring sales tax for Internet purchases and an array of cuts in state aid to the city, including $160 million in operating aid, $30 million in welfare grants and $20 million for juvenile detention.

The Governor also asked executive agencies to cut their budgets by 5 percent in non-personnel-related areas such as energy usage and reducing "inefficiencies" by closing some facilities. Those cuts are projected to save $1.35 billion.

The $124.3 billion budget would increase overall spending at about 5 percent, roughly twice the projected rate of inflation.