In previous estimates, no contingency budget was allowed, she said.

The agreement also calls for a contingency budget to be put in place should lawmakers fail to meet the May 1 deadline.

"So we bit the bullet and cut our spending by $558,000 to meet the requirements of a contingency budget," he said.

The ramifications of contingency budgets in Westchester could be large.

If that failed, a contingency budget based on the previous year's spending would automatically go into effect.

But if it is defeated, a contingency budget would mean that we'd have to cut another $2 million.

Others, including the call for a contingency budget, will require a voter referendum that cannot be held until 2005.

This contingency budget continues the previous year's spending and revenue plans, with some exceptions.

A constitutional amendment is required to provide for a contingency budget.

If voters reject it again, the district must operate under a contingency budget with an increase of 4 percent.