New York Gov. Andrew Cuomo and state lawmakers have proposed increasing public funding for religious and private schools, potentially reversing years of cuts and handing the Roman Catholic Church a political victory.

Under Mr. Cuomo's budget plan, nonpublic schools would get about $117 million, or a 13% increase, to carry out administrative duties the state requires, such as taking attendance, giving standardized tests and running immunization programs. The Assembly's plan puts such spending at about $118 million, while the Senate sets aside $133 million.

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