Governor George Pataki (R-NY) proposed a $110.7 billion state budget plan Tuesday that would reduce property, income and business taxes by $3.2 billion.

Pataki?s $110.7 billion budget proposal would increase spending by 4.1 percent while closing what the governor called a modest $700 million budget gap. Pataki is proposing the largest school aid increase any New York governor has ever recommended. The budget also calls for several tax incentives to lure and enhance business in New York.

Pataki also spoke about tax credits for energy efficiency, including those who buy hybrid vehicles. The governor wants to pursue private partnerships, rather than public funding alone, to get work done on transportation projects, such as the Tappan Zee Bridge.

The budget is due to be in place by April 1.