Gov. Kathy Hochul has laid out her state budget proposal, increasing the total spending to $252 billion. It includes a middle-class tax break, tax rebate checks up to $500 to families and a 4.7% increase in school aid.  Credit: Newsday Studios

ALBANY — Gov. Kathy Hochul on Tuesday released her proposed budget that would increase total spending by 3.6% to $252 billion, including a 4.7% increase in school aid, a middle class tax break and tax rebate checks of as much as $500 to families.

Overall, Hochul’s proposed budget would increase spending by $8.6 billion.

Hochul’s budget proposal will now go the State Legislature for review and potential changes. Hochul and leaders of the Democratic-led Senate and Assembly will then negotiate a budget deal, which is due by April 1.

Hochul also would triple the child tax credit for families as part of a budget she said is dedicated to making New York more affordable. The child tax credit would rise to $1,000 from $330 for families with children under 4 years old and $500 for families with children 4 to 16 years old. That will cost $825 million and help 8.6 million New Yorkers.

WHAT NEWSDAY FOUND

  • Gov. Hochul on Tuesday released her proposed budget that would increase total spending by 3.6% to $252 billion, including a 4.7% increase in school aid, a middle class tax break and tax rebate checks of as much as $500 to families.
  • Hochul also would triple the child tax credit for families as part of a budget she said is dedicated to making New York more affordable. Overall, Hochul’s proposed budget would increase spending by $8.6 billion.
  • Hochul’s budget proposal will now go the State Legislature for review and potential changes. Hochul and leaders of the Democratic-led Senate and Assembly will then negotiate a budget deal, which is due by April 1.

She said the middle class tax break would reduce that tax rate to the lowest in 67 years.

The budget proposal doesn’t increase any broad-based taxes and uses a $5.3 billion surplus from increased tax revenue. The surplus will partly pay for a 14% increase in spending on the Medicaid health care system for the poor and working poor. The Medicaid increase would total $4.3 billion.

Hochul also would use revenue from extending a temporary tax rate for five years for New Yorkers with taxable incomes over $2.1 million, worth $5 billion a year in revenue.

"Bolstered by increased revenues, New York is in a strong financial position," Hochul said in her budget proposal. "This enables us to sustain vital services while delivering billions in middle-class tax cuts, inflation relief, and a tripled child tax credit."

"This year’s budget will put money back in New Yorkers’ pockets and make our streets and subways safer," Hochul said after presenting her budget. 

Hochul’s proposal drew some early support by Democrats in the State Legislature, as well as some concern from outside Albany.

"The hell is in the details," Assembly Speaker Carl Heastie (D-Bronx) said. "but I would say this budget is a great start. There’s not anything that jumps out at me as problematic."

Andrew S. Rein of the independent Citizens Budget Commission noted Hochul’s $252 billion budget proposal is $100 billion more than the budget 10 years ago.

"The budget continues New York’s habit of using revenue surges and temporary taxes to build its fiscal house of cards higher, which could create a self-inflicted fiscal crunch and weaken the state’s ability to meet New Yorkers’ needs during a future recession or in the face of potential federal cuts.

The tax breaks, he said, are "too thin to provide meaningful relief."

On Long Island, Hochul’s plan would earmark $50 million to expand the state’s Rapid Response Home Repair Program and the Resilient Retrofits Program, which make permanent retrofits and rapid home repairs to respond to future natural disasters. The Hochul administration said this will make for quicker responses "in the wake of disasters and to help a wider spectrum of homeowners and victims."

The governor’s budget also would continue funding for the Blue Buffers Buyout Program to encourage voluntary home buyouts in areas most prone to flooding.

In schools, Hochul proposed $13.5 million more to help schools limit the access of cellphones in classes as part of an effort to limit the distraction.

Overall, school aid would increase by $1.69 billion to $37.4 billion, pending negotiations with the legislature, which traditionally increases the aid. Rises in school aid are intended to reduce the pressure on school districts to increase local property taxes.

The state would cover the cost of breakfast and lunch for all public and nonpublic school students at a cost of $340 million.

Overall, Hochul said $6 billion, or almost 60%, of increased spending, would go to Medicaid and school aid, the two biggest areas of the state budget.

She faced some partisan opposition to the growth in overall spending from Republicans.

"New York Democrats should be breaking their runaway spending habits," Assembly Republican leader Will Barclay (R-Pulaski) said. "Instead, they’re breaking the bank."

Other proposals include:

  • Abortion. The budget would continue $25 million in funding to make sure abortion remains accessible statewide, along with $5 million to help build more abortion centers. Hochul also proposes to allow prescriptions for abortion medications used in other states to not include the provider’s name as a way to protect health care professionals from threats and harm.
  • Climate change. Hochul said she is directing more than $1 billion to combat global warming, create jobs and reduce utility bills by encouraging use of cleaner sources than fossil fuels. She includes another $400 million in the Environmental Protection Fund to help fund efforts to mitigate climate change, improve drinking water sources and provide recreational opportunities.
  • Subway safety. She would devote $77 million to fund overtime pay for NYPD officers to patrol trains at night between 9 p.m. and 5 a.m., with two officers to a train. The funding would cover six months, followed by another six-month payment by the city. More police would also be assigned to platforms, she said.
  • Child care. She would spend $110 million to help build and renovate child care centers.
  • Free community college for high-demand occupations. The budget provides $47 million to cover the remaining cost of tuition, fees and books for community college students ages 25-55 pursuing select associate’s degrees in high-demand occupations, including nursing, teaching and technology.
  • Northern border. The budget would provide $8 million to combat rise in drug, weapon and currency crimes at the border with Canada.
  • Prison reform. The budget would provide $400 million to accelerate installation of fixed cameras in correctional facilities and body cameras for correction officers and to expand and restructure the Office of Special Investigations. The effort comes after an inmate died after a beating in December at the hands of correction officers that was caught on a body camera video.

From Love Lane in Mattituck, NewsdayTV's Elisa DiStefano and Newsday deputy lifestyle editor Meghan Giannotta have your look at ways to celebrate Valentine's Day this year. Credit: Randee Daddona, Gary Licker; Newsday / A.J. Singh

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From Love Lane in Mattituck, NewsdayTV's Elisa DiStefano and Newsday deputy lifestyle editor Meghan Giannotta have your look at ways to celebrate Valentine's Day this year. Credit: Randee Daddona, Gary Licker; Newsday / A.J. Singh

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