NEW YORK (Reuters) -- Mayor Rudolph Giuliani was expected to unveil a $37 billion revised New York City budget on Tuesday, which for the first time in years would give more money to museums, the performing arts and Jewish heritage institutions, administration sources said on Monday.

The budget, a revised version of the plan submitted by law in January, retains the mayor's proposed tax cut, but reduces it from $1.8 billion to $1.1 billion when fully implemented, the sources said.The Republican mayor, an all-but-declared candidate for the U.S. Senate seat being sought by first lady Hillary Rodham Clinton, previously cut funding for museums and cultural institutions, in part because he knew the Democrat-led City Council would restore the money, said City Hall insiders, who declined to be named.

By making the council add back the money that had been cut from museums and libraries, Giuliani kept the body from raising spending in areas he did not want, the insiders said. This year, however, he is moving to increase spending on arts and culture.

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"I guess he's showing that he's different, that he's learned," said a city source who declined to be named.

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