ALBANY - Assembly Speaker Sheldon Silver said Monday that he has some serious concerns about the effort to cap local property taxes.

The Manhattan Democrat said local governments squeezed by a tax cap will still have rising expenses to meet.

And, he says, if the state is to help localities pick up the slack, it shouldn't come at the expense of the state's own priorities, including education.

Silver's comments come as a panel created by Democratic Gov. Eliot Spitzer seeks ways to reduce some of the nation's highest local school and government taxes. Spitzer says he expects the panel to recommend a cap because local school spending grows too fast even with increased state school aid.

Silver's Democrat-led Assembly would have to approve any local tax cap.

Spitzer's tax panel has heard an earful in its first two meetings about how cutting costs hurts school kids, the elderly, and others who benefit from public services.

Panel chairman Thomas Suozzi, the Nassau County executive, has noted that it will be difficult to balance the need for property tax relief and the demand by schools and their interest groups for more spending.

The panel continues to meet statewide and is months from a final recommendation.