When the state budget was passed last week, it also (more obscurely) marked the end of a bruising battle on the Upper East Side over party venue 583 Park. Some wealthy residents had objected to local Third Church of Christ Scientist’s renting out its fancy building at Park Avenue and 63rd Street to caterer Rose Group — which regularly threw society and charity galas as well as bashes for high-end clients including Lapham’s Quarterly, the UJA-Federation and the Alliance Française. The space’s liquor license was the subject of a years-long dispute, and ultimately Rose Group was able to get language included in the state budget last week exempting it from an amendment asserting that the spot couldn’t serve hard liquor because it’s within 200 feet of a church. But State Senator Liz Krueger, who reps the district, had the language removed so the space couldn’t get its liquor license back. Proponents of the party venue say that its objectors are a handful of snobs who don’t represent the community and that losing it will cost the neighborhood millions of dollars and many jobs. Said Rose Group’s Louis Rose, “It’s unfortunate that our small business has been under attack for so long and is now suffering as a result. This small group of well-connected, mean-spirited people are not only hurting our hundreds of employees but the businesses and charities that use our space.” Krueger’s spokesman told us, “The senator’s position is crystal clear,” adding that exemptions “in established law for favored places or individuals have no place in the state budget.”