As Joe Spector of Gannett reported today, the Assembly’s property tax cap bill may include an expiration date and exemptions for pension costs.

I caught up with Assemblyman Joe Morelle this morning, who said a 3-5 year expiration date has been discussed, as is an exemption for pension costs.

Morelle, a key upstate supporter of Gov. Andrew Cuomo and backer of the original 2 percent cap on property taxes, said a cap would likely have to be coupled with some sort of pension system overhaul.

I want to be clear, these are things that are being talked about, I don’t know what decisions are being made. The second is how do we treat costs of the pensions in the property tax cap calculations. The reasons that have been raised is local governments are given an amount they have to pay annually based on the rate of hiring and retirement so they have far less control over that.

Speaker Sheldon Silver, D-Manhattan, said earlier in the week that the cap would remain at 2 percent. At the time, Silver was not forthcoming with any details. A new bill is yet to be introduced.

Senate Republicans have said they don’t want to alter the original cap as proposed by Cuomo, who is now touring the state in support of the measure, along with an ethics overhaul and gay marriage legalization. The governor reiterated on Wednesday that he would be willing to negotiate on the cap.

GOP lawmakers have also said they don’t want to water down the cap to the point that it’s irrelevant. But Sen. John DeFrancisco, R-Syracuse, told us Wednesday that a compromise may be needed in order to get a result.