"The reaction of Budget Director Robert Megna to our impartial review is puzzling, " Deputy Comptroller Robert Ward said in a statement.

WSJ: Comptroller, Governor at Odds Over Budget

Cuomo's budget director, Robert Megna, said DiNapoli's review was based on misunderstandings and misrepresentations of a balanced budget that controls spending and borrowing.

WSJ: NY comptroller questions Cuomo budget proposal

On the task are Secretary to the Governor Larry Schwartz, who is Cuomo's top representative, and Budget Director Robert Megna, who could create a tax incentive deal.

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Megna, Cuomo's budget director, noted the budget keeps the increase in spending to under 2 percent while holding the line on borrowing and keeping it just under the state's borrowing limit.

WSJ: NY comptroller questions Cuomo budget proposal

Megna insisted the state has borrowed through its public authorities such as the Dormitory and Thruway authorities for decades, but DiNapoli said there is usually a mix of this backdoor borrowing and more transparent borrowing that requires voter approval.

WSJ: NY comptroller questions Cuomo budget proposal

"We believe the comptroller's staff did him a disservice on some of the comments made in this report, which we think misrepresent or just totally get wrong some of the things that are in the budget, " Mr. Cuomo's budget director, Robert Megna, said in a conference call.

WSJ: Comptroller, Governor at Odds Over Budget

Mr. Megna disputed this, saying that the level of state debt to be issued over the next five years is expected to remain essentially flat, and that the budget doesn't increase the state's debt load, with total debt as a percentage of personal income expected to decline to 4.6% from 5.5% over the next five years.

WSJ: Comptroller, Governor at Odds Over Budget