Budget plans in NYS Legislature include rebates to offset utility costs

ALBANY — New Yorkers could get rebates to offset soaring utility bills under plans the Democrat-led State Legislature unveiled Tuesday.

It’s an idea Republicans say they initiated but are happy to see appearing to gain steam.

The proposed rebate was just one of hundreds of ideas put forward as the majority Democrats in the State Senate and Assembly published their "one house" versions of a state budget. The documents are in response to Gov. Kathy Hochul’s $260 billion proposal from earlier this year and set the parameters for lawmakers to negotiate a 2026-27 fiscal plan by the April 1 deadline.

The two houses, which are more politically progressive than Hochul, want to boost overall spending by around $10 billion more than the governor, go beyond the governor’s ideas on expanding aid for college tuition and child care, raise the corporate franchise tax and increase income taxes on those earning $5 million or more annually.

They also want to end tax exemptions on yachts and gold bullion and raise taxes on crypto mining.

Quick negotiations?

If those sound like huge differences with the Democratic governor, they’re not. The dollar disparities aren’t huge in the scheme of a quarter-billion-dollar budget, and a surge in tax revenue pouring into New York could ease the pressure around income tax increases, which Hochul opposes but New York City Mayor Zohran Mamdani favors.

In short, it could — could — make for one of the smoother budgets to settle in Albany in recent years, Assembly Speaker Carl Heastie said.

"I’m pretty confident this will be a pretty timely budget," Heastie (D-Bronx) told reporters at a news conference to unveil the Assembly’s one house budget.

"Does it get done by midnight, you know, 11:59 p.m., March 31? I’m not sure about that," Heastie said, referring to the cusp of New York’s fiscal year. "But I don’t see it going as long as it did the last two years."

The speaker was alluding to stalemates — chiefly brought about by disagreements on criminal justice issues — that pushed negotiations well into May. There are no similarly divisive issues to negotiate this time, Heastie and other lawmakers said.

 Some of the revenue items in both the Senate and Assembly plans are initiatives lawmakers back almost annually — increases in taxes on the wealthy and corporations, fare-free New York City buses and the sunsetting of the "yacht" sales tax exemption on boats sold for $230,000 or more.

Democrats said their budget is about making living more affordable to middle- and lower-income residents.

"By ensuring the wealthy pay their fair share so we can provide services like child care and fare-free buses, we are laying the blueprint to help New Yorkers remain and thrive in our state," Sen. Michael Gianaris (D-Astoria) said.

Utility rebates

Among the new wrinkles is a call for utility bill rebates at a time when home heating costs are soaring.

The Assembly plan calls for $500 rebates for households with an annual income below $150,000; and $300 for those between $150,000 and $300,000. It also calls for a two-year moratorium on electric and gas rate hikes. The Senate's plan calls for returning some of the revenue and surcharges collected by energy companies and agencies that have been stockpiled for future green energy projects.

It’s a proposal Assembly Minority Leader Edward Ra (R-Garden City South) and other Republicans called for earlier this year.

"Now that New Yorkers are on the brink, it’s fitting (Democrats) turned to Republican-driven solutions," Ra said in a statement to Newsday. But he said the legislature should go further and roll back plans to aggressively transition to renewable energy sources because of the expense and lack of infrastructure.

By Yancey Roy

yancey.roy@newsday.com@yanceyroy