STATE BUDGET A MIXED BAG

The state legislature and Governor Pataki agreed last week to spend $1.5 billion in surplus federal welfare dollars for the fiscal year ending next March, a move that sent sighs of relief through the world of social services.

WELFARE GETS A BREATHER

While a handful of job centers still flounder without operating computer systems four weeks after the Trade Center attacks, the city has streamlined the re-application process for benefits due to expire in December in a push to minimize crowds at the centers.

CASH FOR KIDS

After months of delays, state leaders began to complete their unfinished budget work last week, agreeing to spend part of their surplus federal welfare dollars on child care for low-income families.