Hochul's budget includes 4.3% boost in school aid and streamlining of environmental reviews

ALBANY — Gov. Kathy Hochul will propose a 4.3% increase in school aid, a huge boost for child care and a streamlining of the state’s rigorous environmental review process to speed up building projects, according to a plan her administration released Tuesday afternoon.

It also would include no new taxes.

The governor’s $260 billion budget would keep spending almost flat — less than a 1% increase in overall spending from the current budget.

Hochul, who is up for reelection this year, essentially would keep the state's current budget in place with some modifications. In simple terms, a $10 billion drop in federal aid as a result of President Donald Trump's recent budget legislation would be offset by economic growth that has resulted in tax revenue of $11 billion more than was projected a year ago.

The governor focused on those themes when unveiling her budget proposal at a State Capitol news conference. She also referenced Trump's threat to withhold child care aid from certain states, including New York.

"This year’s budget reflects two realities at the same time: We do have real momentum here in New York. It’s real, you can feel it," Hochul said. "But we have volatility ahead, because of the uncertainty out of Washington."

The impact? There aren't a lot of new goodies in Hochul's plan beyond a boost for child care. But there also aren't any noticeable cuts or tax increases. 

Blake Washington, Hochul's budget director, said the state is bringing in more money because of economic growth and the "strength of Wall Street."

"This gives us a good amount of cash on hand" to maintain state programs with modest increases, Washington said. "And we are able to do this without increasing taxes or taking on unnecessary debt."

A prominent Republican said that extra cash should be sent back to New Yorkers instead of used to plug budget holes. 

 "Where is the direct relief for all New Yorkers?"   said Assemb. Will Barclay (R-Pulaski), the minority leader. "That money should be given back to taxpayers already burdened by high taxes, soaring energy costs and making ends meet in one of the least-affordable states in the nation."

Blakeman criticisms

Hochul, now in her fifth year in office, will face presumptive Republican nominee Bruce Blakeman, the Nassau County executive, in November. She also could be challenged by Lt. Gov. Antonio Delgado, who says he will run against her in June's Democratic primary.

Blakeman issued a statement Tuesday afternoon blasting Hochul for spending money on shelters and other aid for migrants and not proposing income tax cuts or ways to reduce utility costs.

 "This budget does nothing to help everyday New Yorkers pay their bills," Blakeman said. "There’s no income tax relief, no property tax relief, no utility cost relief — nothing that helps families and seniors keep up with the rising cost of living."

Hochul countered she has approved middle-class tax cuts and $400 inflation-rebate checks to homeowners and reduced community college tuition for some as among the ways she has "put money back in the pockets of New Yorkers."

"He clearly doesn't understand budgets," Hochul said of Blakeman.

The governor also pushed back against progressives who might call flat spending growth an austerity budget.

"Austerity would mean no new hires," layoffs and no money for child care expansion, Hochul said. 

"This is not an austerity budget, but it is a disciplined one," she said.

The governor would provide a $3 billion boost in child care and pre-kindergarten spending by earmarking $1.7 billion for schools and communities to expand services and $1.3 billion in aid to families by increasing child care and dependent care tax credits. 

Besides child care, the noticeable changes in Hochul's proposed budget would be a 4.3%, or $1.6 billion, growth in school aid statewide and an 11% jump in Medicaid.

No tax increase

According to the governor’s budget division, the spending plan also will include no new taxes, except on vaping products and nicotine pouches. Some taxes, such as the corporate franchise tax, would be extended for another three years.

The governor’s proposal would allow certain building projects to move forward without going through what’s known as the State Environmental Quality Review process, which developers have complained slows projects. Projects eligible for a fast track would include housing of up to 250 units and day care centers.

Hochul also would change the definition of serious injury to crack down on automobile insurance fraud and increase penalties for people convicted of violating state ethics laws.

Under state law, Hochul and the State Legislature must agree on a budget by April 1, the start of New York's fiscal year.

Among other key items, the governor proposed:

• Earmarking $100 million for the Quantum Research & Innovation Hub at Stony Brook University.
• $50 million to redesign the Jamaica Station transit hub.
• Eliminating taxes on tipped wages.
• A 4% aid hike to the State University of New York system to keep tuition flat and a 3% increase for community colleges.
• $77 million to add extra police to patrol New York City's subway system.
• A sales tax exemption on charging stations for electric vehicles. 
• $30 million in payments to farmers impacted by Trump administration tariffs.
• $750 million for clean water infrastructure, continuing part of a five-year, $3.75 billion plan. 
• 85 more platform barriers at downstate mass transit stations.

Newsday's Steve Hughes contributed to this story.

By Yancey Roy

yancey.roy@newsday.com,keshia.clukey@newsday.com@yanceyroy,