ALBANY - (AP) - New York Gov. Andrew Cuomo is proposing abudget that calls for as many as 9,800 layoffs in addition to cutsto Medicaid and school aid.

The new Democratic governor's proposed budget for 2011-12 totalsnearly $133 billion and includes no new taxes and no new borrowing.

It also calls for expanded lottery play and a surcharge on horseracing.

It seeks a 2 percent cut in Medicaid funding and a 2.9 percentcut in state school aid. It's about $2 billion less than thecurrent budget of about $135 billion.

Cuomo's plan seeks to address what could be a deficit of morethan $10 billion.