From the Morning Memo:

The state budget every year inevitably comes down to a fight over taxes and spending. And this year, advocates for taxing the rich and the business community are once again at odds over how to raise revenue.

“We need that revenue desperately not just for our roads and bridges, but to fund schools and a variety of other things,” said Fiscal Policy Institute Executive Director Ron Deutsch.

For anti-poverty organizations, a key policy debate has been extending an expiring tax rate on millionaires as well as increasing taxes on even wealthier people who make more than $5 million.

“I think there’s no question we have tremendous need throughout New York state,” Deutsch said. “You look at our upstate cities and we have 50 percent child poverty rates in areas like Buffalo, Rochester, Syracuse.”

Hiking taxes on the rich is backed by the Assembly Democrats in their one-house budget passed this week. The Senate takes the opposite approach, letting the higher rate on millionaires expire and giving them some tax relief.

“The Senate basically wants to provide a $3.7 billion tax cut to families in New York making more than $2 million a year. We think that’s morally unjust,” Deutsch said.

Business groups in New York see it differently, hoping the line is held on taxes and some regulatory reforms are included as well.

“There’s a lot of wants the governor has that are not in our purview,” said NFIB State Director Mike Durant. “The Albany way is to make trade, so we’ll see. Hopefully, some of the business reforms that are needed will be part of that package.”

Last year, the business community was stung by a minimum wage increase that will eventually hit $15, and the approval of paid family leave. Durant hopes the pendulum swings the other way this year.

“I think that there is definitely an opportunity that we feel confident that the Senate is going to be able to address some business issues in a final budget deal,” Durant said.

A marquee issue for businesses: reforming the state’s workers compensation laws, a long-sought effort that has stalled.

“I think that workers comp has proven to be the number one issue for NFIB, the business community writ large,” Durant said. “We’ll definitely be pushing for meaningful reform.”

The budget is expected to pass by March 31.