The New York State Senate Majority released its one-house budget resolution this week, outlining funding proposals and policy changes affecting housing, healthcare, education, transportation and other programs.
The proposal includes new taxes and revenue measures, expanded social programs and increased funding for public services across the state.
The plan includes a 0.5% personal income tax surcharge on the top two income brackets expected to generate $1.1 billion. It also raises the top corporate tax rate from 7.25% to 9% for businesses with income over $5 million.
Lawmakers proposed ending several tax exemptions, including a sales tax exemption on gold bullion over $1,000 and a sales tax exemption on boats valued above $230,000. The proposal also adjusts the state’s pass-through entity tax credit to 90%.
The Senate plan authorizes New York City to increase certain local taxes, including raising the corporate tax rate for financial sector firms from 9% to 10.8% and from 8.85% to 10.62% for other sectors. It also authorizes a higher unincorporated business tax rate for businesses with income above $5 million.
The proposal includes more than $5 billion in revenue and funding for New York City, including $500 million for shelter reimbursements, $193 million for Temporary Assistance for Needy Families reimbursements, $263 million for foster care aid and $431 million in school aid.
Lawmakers also proposed $2.2 billion in childcare subsidies for families earning below 85% of the state median income and $500 million for the Child Care Worker Retention Grant Program. The budget includes $34 million in additional childcare pilot program funding and $73 million to begin implementing a contract-based childcare program for two-year-olds in New York City.
The plan allocates $200 million for the Energy Affordability Program and creates rebates of up to $2,000 for heat pumps and previously owned zero-emission vehicles.
Education funding includes $395 million for universal school meals and an additional $285.3 million in Foundation Aid, bringing the total to $27.4 billion. The proposal also includes $105 million for community schools and $30 million in additional funding for the Learning and Enrichment Afterschool Program Supports program.
The Senate proposal adds $1.8 billion for the first year of a five-year capital plan for the State University of New York, bringing SUNY capital funding to $3 billion. It also adds $1.8 billion for a City University of New York capital plan, for a total of $2.2 billion.
Health care investments include $500 million for financially distressed hospitals, $405 million for hospital rate increases and quality incentive programs and $270 million for nursing homes, hospice and assisted living programs.
The budget also proposes $250 million for the Housing Access Voucher Program and $500 million in capital funding for the New York City Housing Authority.
Senate Majority Leader Andrea Stewart-Cousins said the proposal responds to federal funding reductions and focuses on affordability.
“As Washington continues to cut essential programs New Yorkers rely on, our one-house budget aims to strengthen funding to support the well-being of New York’s working families and invest in local economies across our state,” Stewart-Cousins said.
Senate Deputy Leader Michael Gianaris said the plan addresses rising costs.
“The Senate budget proposal would accomplish what is needed to carry New Yorkers through the current affordability crisis,” Gianaris said.
State lawmakers will continue negotiations with the Assembly and the governor before adopting a final state budget.
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