(Reuters) - New York Governor Andrew Cuomo proposed on Tuesday a $136.5 billion state budget for fiscal 2014 that boosts education spending and closes a $1.3 billion gap without raising taxes.

The spending plan, which would be a 1.9 percent increase, or $2.5 billion, from the current fiscal year, must be approved by state lawmakers.

The state's fiscal year begins April 1, three months earlier than most.

Cuomo's proposal would increase money for education by $889 million, or 4.4 percent from current levels.

The state would save some money by keeping total spending increases below 2 percent for a third straight year. New York could save nearly $974 million because of government cost control efforts, Cuomo said.

(Reporting by Hilary Russ; Editing by Richard Chang)