ALBANY – Governor Pataki launched his 11th year in office by proposing to shake up the way state government does business.

In his State of the State speech yesterday, the Republican governor proposed to crack down on influence-peddling at the Capitol, overhaul the management of semi-independent commissions and authorities such as the MTA, and end the gridlock that has produced 20 years of late budgets.

He also announced that he is appointing a supply-side economist and talk-show host, Lawrence Kudlow, to head a study of overhauling the state’s tax code – a clear hint that Mr. Pataki will propose tax cuts in the future.

The seven-point government reform plan aligns Mr. Pataki, rhetorically at least, with the chorus of critics who say Albany needs to be fixed. He didn’t bring up the issue until the latter part of his hour-long speech, but he went into more detail on the topic than he did on other pressing issues, such as soaring Medicaid costs and a pending court order to provide more money for the New York City schools.

Addressing an Assembly chamber crowded with legislators, political aides, lobbyists, and local officials, Mr. Pataki made only brief references to the major headaches facing state government in the year ahead, and he never once mentioned the budget gap, which his administration estimates at $6 billion.

Instead, he catalogued what he considers to be positive changes in the decade that he has been governor – especially in reducing crime, improving the business climate, and conserving the environment – and he promised more of the same.

“The ‘bold, sweeping, fundamental changes’ we enacted together have saved lives and made New Yorkers safe,” he said, quoting from his first State of the State speech, in 1995. “But we can do even more, and we will.”

“Let’s make 2005 the year when bold, innovative reforms revitalize and renew our government process, bringing a new sense of energy, nonpartisanship, and restored public confidence to Albany,” he said.

As usual, reaction divided along partisan lines. The speaker of the Assembly, Sheldon Silver, a Democrat of Manhattan, criticized the governor for offering so little detail.

“There was a lot of rhetoric, but he didn’t address the major issues that confront New York this year,” Mr. Silver said. “He talked the word ‘bold’ 21 times, but he never recognized the issues we need the bold initiatives on.”

By contrast, the Republican majority leader of the Senate, Joseph Bruno of Rensselaer County, said Mr. Pataki “had the right message, the right tone, the right attitude.”

“I see this as a message of hope and optimism,” Mr. Bruno said. He said he was content to wait for details in the governor’s budget proposal, due January 18. The State of the State speech “is intended to generalize, broad-brush, and that’s what the governor did.”

The chairman of the state’s Conservative Party, Michael Long of Brooklyn, said he was encouraged by the selection of Mr. Kudlow to overhaul the tax code.

“It’s a clear message to businesses and taxpayers across the state that help is on the way,” Mr. Long said. Mr. Kudlow, host of “Kudlow and Cramer” on CNBC and an economic adviser to President Reagan, “is a very strong progrowth economist, and he understands that tax cuts make the economy move,” Mr. Long said, adding, “It’s a sign the governor is going to go back to fighting for the taxpayers and businesses of the state of New York.”

“New York State has far, far too many taxes,” Mr. Kudlow told The New York Sun. “The tax rates are way too high. Work effort, investment, and entrepreneurship are all punished…. In fairness to Governor Pataki, he has made some positive changes. There’s a lot more work to do.”

Mr. Kudlow said his panel would study the gamut of business, income, and sales taxes in New York – the list he received is 20 pages long, he said – but declined to discuss his plans in detail.

“If you know anything about me and my history as a supply-sider, you’ll know where I’m going to look,” he said.

Democratic legislators, who generally refrained from applauding during Mr. Pataki’s discussion of tax cuts, dismissed the appointment as an empty gesture.

“In the absence of a real plan, you trot out marquee names to distract people,” Senator Eric Schneiderman of Manhattan said.

Mr. Silver also responded skeptically to Mr. Pataki’s proposal for an early phase-out of a temporary income tax surcharge that was enacted over his veto in 2003.

“I’m waiting to see his budget,” Mr. Silver said. “Maybe there’s a large amount of income from that lottery he must have won.”

Senator Martin Golden, a Republican of Brooklyn, said, however, that he believes the deficit will shrink to the point where the state can afford to cancel the surcharge.

“I believe it’s closer to $2.5 billion, which we can negotiate through very easily,” Mr. Golden said. “Fiscally, I think this city and state are going to be on good ground very shortly.”

A government watchdog with the New York Public Interest Research Group, Blair Horner, praised Mr. Pataki for putting so much emphasis on reforming how Albany does business.

“Clearly the governor has heard the public’s cry for reform,” Mr. Horner, a frequent critic of the governor’s record on this issue, said. “He’s offering a sweeping package. The question now is will he deliver?”

Mr. Pataki’s proposals would prohibit lobbyists from giving lawmakers gifts of any value, bar lobbyists from seeking to influence the awarding of state contracts, overhaul the management of the authorities such as the MTA, give rank and-file lawmakers more power in the Legislature, and overhaul a process that has produced 20 late budgets in a row.

With those steps, Mr. Pataki said, “we will shatter the status quo, strengthen public confidence, and change Albany for generations to come.”

Although Mr. Pataki reiterated his support for building a stadium on the West Side of Manhattan – part of Mayor Bloomberg’s plan for attracting the 2012 Olympic Games – the proposal faces an uphill fight in the Legislature.

Mr. Bruno said “the jury is still out” on the plan, saying it seems to be dividing the business community. Mr. Silver, whose district includes ground zero, said he is concerned that building the stadium will distract from redeveloping Lower Manhattan. “I’m having some serious doubts about the entire West Side development project,” he said.

Mr. Pataki had relatively little to say about the state’s $42 billion Medicaid health plan for the poor, disabled, and elderly, which is one of the biggest and fastest-growing expenses for the state, New York City, and other local governments. He mentioned his negotiations with local officials, who are seeking a cap on their share of the program, and he said his budget “will propose Medicaid reforms that will reduce costs and also protect county property taxpayers while enduring the quality of health care we all deserve.”

Also in the speech, Mr. Pataki:

* Said he will travel to Japan and China this year to promote New York businesses.

* Ordered the use of nontoxic cleaning chemicals in state buildings, and proposed legislation to extend the requirement to schools.

* Announced an initiative to track down New York’s 100 most dangerous fugitives, including a “most wanted” Web site.

* Proposed legislation against cyberterrorism and “agri-terrorism” and called for reinstating the death penalty, which was struck down by the courts last year.