Governor Andrew Cuomo and legislative leaders on Tuesday announced an agreement on the state’s overdue budget that includes about $ 4 billion in new taxes, legal sports betting and unemployment insurance for illegal immigrants.
The $ 212 billion spending plan, which expired on April 1, exceeds last year’s $ 194 billion price to offset economic losses from the coronavirus crisis.
“New York was ambushed early and hardest hit by COVID, devastating our economy and requiring unprecedented and urgent emergency spending to manage the pandemic,” said Cuomo.
“Thanks to the strong fiscal management of the state and the relentless pursuit of securing the federal support that the pandemic demanded, not only are we balancing our budget, but we are also making historic investments to reimagine, rebuild and renovate New York after the worst period of health and crisis economy in a century. “
Lawmakers started voting on bills in the state Senate and the House on Tuesday afternoon, and the process is expected to arrive on Wednesday night, as three bills out of every remaining ten need to be printed. .
“It is our understanding that all budget bills have been agreed in three ways and may still be at some level of the process, but we will be ready to take action, probably with necessary messages,” Liz Krueger, Senate Finance President said in plenary session of the state Senate during the debate.
Cuomo and state lawmakers clashed on expensive budget items, including the tax hike that will impose an increase of about 1% on New Yorkers who earn more than $ 1 million a year and establish new tax ranges for taxpayers. who earn more.
The state’s corporate franchise tax will also increase from 6.5% to 7.25% for three years, although the rate remains the same for companies earning less than $ 5 million.
“This is not a tax hike for the vast majority of New Yorkers,” said Krueger during the debate. “It is relatively small, approximately 50,000 taxpayers who are at the richest end of the scale, even during a pandemic and economic collapse.”
But others, including two candidates for mayor of New York City, say the tax increases will cause an exodus of much-needed revenue from the city, as residents and businesses seek greener pastures in less expensive cities and states.
Another critical point was the “Fund for Excluded Workers”, which will allocate $ 2.1 billion in unemployment benefits to undocumented workers who would otherwise not be entitled to federal funds. The controversial issue has led to an impasse between New York’s progressive Democrats and moderate Democrats in the countryside and suburbs.
The sides also agreed to legalize mobile sports betting – which lawmakers say will increase revenue this fiscal year by $ 99 million and then up to $ 500 million by 2025-26.
This year’s budget is also responsible for $ 2.4 billion in emergency rental assistance and will provide an annual increase of $ 1.4 billion over the next three years for public schools across the state. About $ 105 million will be spent to expand the universal pre-K to the 210 districts that do not yet have the program in place.
Renovation of the nursing home is also included – these facilities will now be required to spend at least 70 percent of their revenue on patient care and 40 percent on the resident team. And $ 64 million will go to increase the team.