Reply #2: "politicians trade favors with groups every day"

[Adsos Letter]

And I said as much in my highlighted note at the bottom of the OP. And the Democrats have also been involved, historically, in the attempt to get TAP funding for rabbinical institutions. I'm non-partisan when it comes to Church/State issues; I object to an assault on it from any religious group or political party, including President Obama's increase in Faith-based funding.

From The Jewish Week LINK: http://www.thejewishweek.com/news/new_york/rabbinical_students_no_longer_tap_ped_out

*snip*
But the funding is also bound to raise hackles at a time when Albany faced tough budget decisions, slashing funding for vital social service programs, reducing education spending and cutting aid to New York City that could lead to the layoffs of thousands of teachers.
...
But the Washington-based group Americans United for Separation of Church and State, which has fought against state-chartered schools that teach Arabic or Hebrew culture, is considering a legal challenge.
*snip*

But AU also challenges the Constitutionality of taxpayer funding for all clergy training; from the Jewish Week article:

*snip*
“We believe that the training of clergy should be paid for by members of the various faiths, not the taxpayer,” said Robert Boston, a spokesman for the group.

Henry Stern, founder of NY Civic, a government watchdog group, said he viewed the funding as a “ploy to get Orthodox support in the 2012 races” and said it represents “a serious First Amendment question.”
*snip*
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My issue, and AU's, is the role of tax monies used for funding religious education, and as part of a larger erosion occuring nationwide (from further down in The Jewish Week
*snip*
In other news likely to impact efforts to publicly fund religious education, the U.S. Supreme Court this week upheld the right of Arizona to grant income tax credits for contributions to private tuition scholarship groups that help students at private schools.

In a 5-4 opinion written by Justice Anthony Kennedy, the high court overturned a lower court’s ruling that the credits were unconstitutional on grounds that those who brought the suit had no standing to do so. The ruling said the funds to religious education do not come from the state but from private citizens, and so could not be blocked by the plaintiffs.

“The high court upheld school choice today,” said Nathan Diament, director of public policy for the Orthodox Union on Monday. “The principles of government respect for private choices in education and government neutrality in programs which can aid and support such private choices is a critical issue for the Orthodox Jewish community and other American faith communities.”

But the Anti-Defamation League called the decision a setback for religious liberty.

“The distinction the court drew in this case between tax credits and treasury expenditures is illogical and misguided,” said National Director Abraham Foxman and National Chair Robert G. Sugarman in a statement. “However, what is more disturbing about the ruling is that the Supreme Court has dramatically undercut the ability of taxpayers to protect religion and government by intervening when government money is improperly spent.”
*snip*

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New York's decision seems to be another chip away at an already eroding separation of Church and State at the level of the various states, and at the federal level as well. As Boston noted in his article linked in the OP, New York is operating in a spirit counter to that of their state constitution, and not in a progresive direction (obviously constitutions can be modified to increase rights, liberty, etc., progressive values).

Article IX, sec. 3 of the New York State Constitution:

(Use of public property or money in aid of denominational schools prohibited; transportation of children authorized)

§3. Neither the state nor any subdivision thereof, shall use its property or credit or any public money, or authorize or permit either to be used, directly or indirectly, in aid or maintenance, other than for examination or inspection, of any school or institution of learning wholly or in part under the control or direction of any religious denomination, or in which any denominational tenet or doctrine is taught, but the legislature may provide for the transportation of children to and from any school or institution of learning. (Formerly §4 of Art. 9. Renumbered and amended by Constitutional Convention of 1938 and approved by vote of the people November 8, 1938. Formerly §4, renumbered §3 without change by amendment approved by vote of the people November 6, 1962; former § 4 repealed by same amendment.)
LINK: http://www.dos.state.ny.us/info/constitution.htm