FILE - In this Jan. 8, 2020, file photo, New York Gov. Andrew Cuomo delivers his State of the State address at the Empire State Plaza Convention Center, in Albany, N.Y. Cuomo unveiled a $178 billion state budget proposal on Tuesday, Jan. 21, 2020, that includes a plan to create a team tasked with reining in spending on Medicaid.(AP Photo/Hans Pennink, File)

ALBANY (AP) — New York Gov. Andrew Cuomo unveiled a $178 billion state budget proposal Tuesday that includes a plan to create a team tasked with reining in spending on Medicaid.

The Medicaid Redesign Team will be asked to find ways to trim $2.5 billion in spending from the program, Cuomo said.

Cuomo said one out of three New Yorkers — 6 million people — are on Medicaid, the government health care program for people with low incomes.

“And this is something to be proud of,” he said. “But the Medicaid system has to be fiscally sustainable.”

Cuomo, a Democrat, didn’t spell out exactly where he expected those savings to come from, but he hinted that the healthcare industry — which has feared an increase in taxes on health insurance — may have to provide “new resources” or eliminate inefficiencies.

Cuomo said the savings must have “zero impact” on Medicaid beneficiaries. He also promised the state wouldn’t sock local governments with a higher share of program costs, as long as they could keep cost increases to 3% per year or less. Municipalities now have some of their Medicaid costs covered by the state under a deal cut years ago to limit property tax increases.

The redesign team will report its recommendations before the April 1 deadline to pass the budget.

The Medicaid proposal was part of an overall spending plan that would increase state spending by 1.9%. In his budget proposal, Cuomo also outlined a five-year plan that would spend $33 billion fighting climate change or preserving the environment.

Cuomo said his budget would increase spending on infrastructure by $25 billion, to what he said were state-record levels.

The release of Cuomo’s proposal launches a process that includes hearings, legislative spending proposals and tweaks from the governor ahead of a March 31 deadline. The governor has wide influence on the state budget, which has increasingly included policy proposals on top of spending.