Photo: Getty Images
With the deadline to pass a new state budget just two weeks away, New York lawmakers are optimistic about reaching an agreement on time. Governor Kathy Hochul has proposed a $252 billion budget, while the Assembly and Senate are suggesting $256 billion and $259 billion, respectively. The focus of the negotiations will be on finding a compromise on the budget's final amount and addressing key policy issues, such as inflation rebate checks, prison oversight and reforms, and solar tax credits.
According to New York Focus, Governor Hochul has resisted raising taxes on the wealthiest New Yorkers, a stance that differs from the Assembly and Senate, which are advocating for higher taxes on individuals earning more than $5 million annually. The governor's budget also includes a proposal to extend a law raising taxes on those making over $1.1 million through 2032.
A unique aspect of Hochul's "affordability agenda" is the idea of mailing checks of up to $500 to New Yorkers as a refund on higher-than-expected tax returns. While some critics argue this is not an effective long-term solution, the Assembly supports the plan, and the Senate has modified it to apply only to senior citizens for three years.
The budget negotiations also include discussions on funding for the Metropolitan Transit Authority (MTA), which faces a significant financial shortfall. Although no concrete solutions have been proposed, all parties recognize the need to address this issue.
As reported by the New York State Budget Office, Governor Hochul's budget aims to maintain the state's reserves at a record-high $21.1 billion, ensuring financial stability for unexpected downturns. The budget is set to be finalized by April 1, and lawmakers are working diligently to meet this deadline.