ALBANY, New York (WWNY) – \u201cThere are no income tax increases on New Yorkers.\u201d That\u2019s the message from Gov. Kathy Hochul, who unveiled a $260 billion state budget that she says benefits from record bonuses on Wall Street.<\/p>\n
The plan includes major investments in childcare, education, and housing, but comes as the state grapples with more than $10 billion in reduced federal support.<\/p>\n
The spending plan includes a 0.7 percent increase in spending over last year, but the governor notes federal funding to New York has decreased by $10.3 billion, representing an 11.4 percent decrease.<\/p>\n
Hochul says one of the biggest hits comes to Medicaid, where the state is absorbing $3 billion in recurring federal cuts.<\/p>\n
Key investments include:<\/p>\n
Childcare: $4.5 billion total investment in child care and pre-K services.<\/p>\n
Education: Nearly $40 billion in school aid.<\/p>\n
College: SUNY and CUNY will see a tuition freeze continue with an additional $90 million in operating support.<\/p>\n
Housing: $250 million in new affordable housing funding.<\/p>\n
Public Safety: $352 million for gun violence prevention and $77 million to strengthen subway safety. <\/p>\n
Where\u2019s the money coming from?<\/p>\n
Hochul says the state can afford these investments because revenues have exceeded projections by $17 billion over the next two years, driven by record Wall Street bonuses.<\/p>\n
Local lawmakers\u2019 reaction<\/p>\n
Assemblyman Ken Blankenbush (R. – 117th District) said, in part, \u201cThis budget presentation continues that same pattern: government grows, spending grows and the pressure on working families, seniors and small businesses grows with it. When the state\u2019s finances are hemorrhaging, New Yorkers don\u2019t need more excuses, they don\u2019t need finger pointing at the federal government, they need a plan that respects the value of a dollar and delivers measurable results.\u201d<\/p>\n
Assemblyman Scott Gray said, in part, \u201cThe Governor\u2019s Executive Budget serves as an initial framework in what is expected to be a comprehensive, couple month negotiation process. It should be viewed as a starting point rather than the definitive decision. With a total of $260 billion in all-funds spending, the size of this proposal is concerning and warrants careful, sector-specific review to ensure that New York can sustain both current commitments and future obligations.\u201d<\/p>\n
State Senator James Stec (R. – 45th District) said: \u201cI\u2019ve repeatedly noted that you can\u2019t spend your way into affordability. If you could, New York would be the most affordable state in the nation. Instead, it\u2019s the most expensive to state in which to work and live. It\u2019s frustrating that the governor used the Executive Budget proposal to treat affordability as a buzzword instead of an opportunity.\u201d<\/p>\n
What\u2019s next?<\/p>\n
The spending plan now heads to the state Legislature. The deadline to pass a budget is April 1.<\/p>\n
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