State lawmakers approved $775 million in cuts and other savings from New York’s health care budget on Monday after Gov. David A. Paterson inserted the reductions into emergency spending legislation submitted to the Legislature to keep the state government from shutting down.

The cuts will affect hospitals, nursing homes and a lengthy list of other health-related programs, and marked the first significant step in weeks toward an agreement on the state’s annual budget, now more than two months overdue. The legislation also requires the state to save an additional $300 million a year by cracking down on Medicaid fraud, waste and abuse.

In the Senate, the emergency budget bill including the health care cuts passed along party lines, with all 32 Democrats voting for it and all Republicans present voting against. In the Assembly, according to the unofficial tally, the package passed with the support of most Democrats, while some joined Republicans in voting against it.

Because cutting the state’s health care spending means forgoing some federal matching subsidies, the cuts are likely to have an even deeper impact than the stated total.  More from The New York Times here.