School and municipal aid would be held at current levels in the $30.9 billion budget, raising the prospect of property tax increases around the state.

At the agency, she oversaw a $1 billion budget and close to 1,000 employees, administering programs from municipal aid to the development of affordable housing.

Those agencies use about a third of the state budget, with the other two-thirds devoted to school and municipal aid and to social services.

The municipal aid in the bill eased fears that local budgets and taxpayers would suffer from the changes.

In order to reach a balanced budget, the Democrats had to relent on program cuts to education, health care, social services and municipal aid.

The Governor has promised to support additional municipal aid if the Legislature comes up with financing for it.

Mr. Hardwick supports a tax amnesty to help pay for municipal aid.

The dynamics in the recent struggle to find some additional municipal aid were slightly different than in 1974.

DaimlerChrysler has received extensive municipal and state aid to build its factory here instead of in some other state.

Also, the administration agreed to provide an additional $20 million in municipal aid to densely populated communities with high costs of living.