Governor Andrew Cuomo's minimum wage proposal would set up two separate wages: $11.50 for New York City and $10.50 for everywhere else. Cuomo said his plan avoids letting local governments raise the wage on their own.

"You could have a race to the bottom or you could have a race to the top, so I've said in the past that would be chaotic to allow localities, but I recognize the cost of differential in different markets," said Cuomo.

But last May, Cuomo embraced a far different minimum wage plan when he received the endorsement of the labor-backed Working Families Party.

"I support a minimum wage of President Obama's $10.10 indexed so you don't have to continually update it, with an adjustment factor for up to 30 percent for the cost of living across different markets in this state."

Cuomo insisted this week the state would always have to sign off on the wage hike set by locals.

"I approved it subject to state approval. Which means the state would approve it," he said.

Meanwhile, there's disappointment from advocates for increasing the minimum wage that Governor Cuomo is going back on his word for support for a plan that would have allowed local governments to raise the wage on their own, based on a formula set by Albany.

"We definitely think it's not enough. I mean, struggling New Yorkers who are working two, three jobs know it's not enough. I think we need to look at what other states and cities are doing as a real starting point or at least an end point," said Jessica Wisneski with Citizen Action.

Business groups contend however the minimum wage hike which would be the second approved by state lawmakers in three years, will only hurt job growth.

"The real answer to concerns about middle class and income inequality is to make sure New York state is competitive and able to attract good paying jobs in the high-wage sectors," said Ken Pokalsky with Business Council Vice President Government Affairs.

Business groups are supportive, however, of Cuomo's past spending record. Sources say the governor once again is expected to propose a budget that holds spending under a 2 percent increase over last year.

Governor Cuomo gives his State of the State Address Wednesday. Time Warner Cable News will carry that live in its entirety at 1:30 p.m.