New York Governor Andrew Cuomo proposed a fiscal 2013 budget of $132.5 billion that closes a $2 billion deficit in part by finding $1.14 billion in agency savings and centralizing purchasing and human resources.

Cuomo, a 54-year-old Democrat, released the budget today in Albany, the capital. The governor also linked an increase in school aid to compliance with a new statewide teacher-evaluation system.

Long-term savings would come by raising the retirement age for new workers and giving them an option between a state-backed pension plan with higher employee contributions and a 401(k) plan.