According to the article:
'The majority of voices who spoke about this issue in our conference were not supportive of approving it as part of the budget,' said Assemblyman Steven Englebright (D-L.I.), a fight fan.
As I have previously posted here, there were two ways essentially that MMA could be legalized: (1) through the normal legislative channel, i.e. pass the Senate, pass the Assembly, and then get signed into law by the Governor; and (2) through the state budget.
Given timing issues and my feelings about the Assembly Speaker's position on the bill (that he was opposed), I did not think it was likely the bill would pass through the normal legislative channels this year. However, I was slightly more optimistic about the second option (with the caveat that it still needed to be approved by the Assembly to make it into the budget) because the budget timing is pressing and there is more give-and-take when resolving differences in the budget.
Given the exclusion from the budget (and the fact that democrats in the Assembly are opposed to the legalization of MMA), it looks like the issue will need to be revisited again next year unfortunately.
I will continue to monitor.