Governor Paterson and state lawmakers, who are closing in on a 2008-09 budget deal, have ruled out raising taxes on millionaires but have agreed to spend more than what Mr. Paterson had advised.

At a press conference yesterday evening, Mr. Paterson said he and Senate Republicans had rejected a plan backed by Assembly Democrats that would have temporarily raised the income tax rate of state residents earning more than $1 million a year to 7.7% from 6.85%. The Democratic speaker of the Assembly , Sheldon Silver, said his conference still supported the tax-hike plan but said he had failed to persuade the governor or the Senate to join him.

Mr. Paterson, who replaced Eliot Spitzer as governor earlier this month, had indicated to Mr. Silver that he did not want to raise taxes so soon after taking office.

The three sides agreed to add $500 million to the Paterson administration’s spending plan, putting state operating funds at $81.3 billion, an increase of about 4.4% over the previous year.

The three sides said they had found new revenue to pay for the increase through a re-estimation of costs.

The budget is due April 1.