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State Senate leaders may use legal settlement money for campaign

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ALBANY — State Senate leaders are considering using money the state receives from legal settlements to fund a campaign public financing system.

The leaders are discussing the possibility of using the settlement money as an alternative to direct taxpayer support, sources say.

The issue has been a key stumbling block as the Republicans and five dissident Democrats who jointly control the Senate try to hammer out the Senate’s version of a state budget.

The five dissident Democrats have been holding out for public financing, which has the support of Gov. Cuomo and Assembly Democrats.

But Senate GOP Leader Dean Skelos and his members have opposed the idea of using taxpayer money to fund campaigns.

Senate Deputy GOP Leader Thomas Libous didn’t deny the discussions, but said “the public financing aspect has been somewhat of an issue” for the Republicans.