E-ALERTGovernor Hochul Puts ForthFY 2023 Executive Budget ProposalHi friend, Earlier today, Governor Kathy Hochul released her fist Executive Budget Proposal for FY 2023. You can find her press release here and the full Briefing Book here. Details on the budget will be out later today or tomorrow including the Appropriation Bills which detail the State Operations, Capital Expenditures and Aid to Localities funding and the Article VII bills which include legislation the Governor is asking for to advance her agenda. We will report more on the details in our weekly E-news on Thursday. The following highlights pieces of the Budget Briefing from today: The Governor’s budget totals $216 billion which is $4 billion higher than last year. The budget leans heavily on $81 billion in federal funds primarily as a result of pandemic assistance. Expenditures Hochul is proposing a 3.1% spending increase in taxpayer dollars for her 2022 proposed budget, which would run from April through March 2023. Broadly these breakdown as: · $32.8 billion in capital expenditures for roads and bridges, new transit options, expanded transit hubs and funds for revitalizing communities. · $31 billion for schools, highest schools aid ever · $26.8 billion in local assistance · $25 billion five year housing plan for roofs over every New Yorker · $10 billion for the largest state investment in health care ever · $7.8 billion in public safety · $4 billion Clean Water, Clean Air and Green Jobs Bond Act to be before the voters in November · $2 billion to protect renters · $1.8 billion in economic development · $1.6 billion in broadband and technology · $1.4 billion for childcare to help get parents back I the workforce · $500 million in Offshore wind · $500 million in clean water infrastructure · $257 million in higher education · $240 million in mental health and Opioid addiction · $200 million for parks investment · $400 million in the Environmental Protection Fund Tax Provision The Executive Budget proposes the following tax actions: · Small Business Tax Relief Credit. The Budget provides recurring tax relief to businesses through a revision to the income exclusion and expands the benefit to include pass-through entities with less than $1.5 million in NY-source gross income. · Small Business Tax Relief Credit for COVID-19 Expenses. A new, one-time, capped refundable tax relief program will provide relief to businesses for eligible capital expense. · Middle-Class Tax Credit Acceleration. The Budget accelerates the phase-in of the middle-class tax cut, which began in 2018 and was scheduled to fully phase in over eight years by 2025. The lower tax rates will now be fully phased in by 2023 which decreases tax receipts by $162 million in FY 2023. · Homeowner Tax Rebate Credit. The proposed rebate program will provide low- and middle-income homeowners, as well as senior homeowners, with a rebate in the fall of 2022 to offset property taxes at a one-time State cost of $2.2 billion. |