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New York Gov. Kathy Hochul announced Tuesday a $252 billion executive budget that appears to be aimed at appeasing New Yorkers unhappy with rising costs rather than addressing President Trump’s policies that could hurt the state. .
The proposed budget includes funding for $1 billion in average tax cuts, $3 billion in tax cuts for millions of New Yorkers, $800 million for ‘the expansion of the children’s loan for the state, $ 340 million for school meals for each and every student. $60 million for more police on the subway — designed to address cost-of-living, crime and cost-of-living issues.
The spending plan showed an increase of nearly $8.6 billion from the current budget, mainly due to increases in Medicaid and education spending.
Perhaps most importantly, it is not part of Ms. Hochul’s budget. He did not offer a plan for what would happen if President Trump follows through on his pledge to end congestion pricing, which would halt the flow of hundreds of millions of dollars a year to the Metropolitan Transportation Authority.
It’s also unclear whether other funding will be available in response to the Republican-led federal government’s focus on cutting money from social programs like the Affordable Care Act.
Ms. Hochul said Congress should be held accountable for the votes it received and the programs it cut. He specifically focused on the $10,000 limit on the amount of state and local taxes that people can deduct from their federal taxes. The governor wants the cap removed; Mr Trump has also spoken out against the crown.
The state’s large rainy-day fund — close to $21 billion — can’t be used to fill holes that could come from cuts in federal funding or changes in tax policy, he said. He added that he would stand against Mr. Trump’s policies as well as his efforts. to terminate citizenship.
“Voting has consequences,” said Ms. Hochul. “I can’t stand here and say that New York State is going to match every federal dollar. No state governor can do that, and I’m not ready to say that. It will be difficult.”
Mr. Trump’s name did not appear in Ms. Hochul’s 137-page budget presentation, despite noting that “uncertainty is looming” when it comes to the federal government.
“Potential federal changes in trade, immigration and tax policy could raise inflation,” the brief said.
“Similarly, a reduction in federal aid that supports New York’s programs, including health care, services, could have a negative impact on the state and New Yorkers who depend on these programs. social and public safety.
Blake G. Washington, Ms. Hochul’s budget director, said in an interview that the governor’s office will see first what comes from Congress and the White House.
“We have legislators,” he said. “They are on the calendar from January to June. But technically they can be done every year if it is necessary to adapt to the new federal reality. “
Higher-than-expected taxes mean an expected surplus of about $5.3 billion next fiscal year. The extra income has made Ms. Hochul a champion of the crowd’s plan to challenge her poll numbers as bipartisan candidates prepare to challenge her in 2026.
Sensitive to voter frustrations about inflation and the state’s already high tax burden, Ms. Hochul is proposing no new tax increases. His plan includes extending the tax break for residents earning more than $1.1 million in the 2032 tax year. It is scheduled to expire in 2027.
Ms. Hochul’s budget includes a smaller view of the upcoming budget deficit, which she says will reach $6.5 billion next fiscal year and jump to about $11 billion. in 2029. Assemblyman Ed Ra, a Republican from Nassau County and the ranking member of the Taxpayer’s Ways and Means Committee, said that too little Mrs. Hochul’s budget to close this gap.
“Recurring income and recurring expenses do not match,” he said. “We’re committed to a lot of new spending.” Mr. Ra proposed cutting economic development programs that do not produce promised jobs to reduce the gap in the future.
The governor has begun implementing his proposed cell phone ban, offering $13.5 million to “restrict the use of cell phones and other Internet-enabled devices” during school hours. The proposal, if passed, would begin next school year and leave it up to individual school districts to implement the restrictions. This includes exceptions for students who need equipment for things like insulin monitoring and students in English as a second language programs.
“We’re not developing the skills we need because kids are distracted by their phones,” Ms. Hochul said. “Our children will be freed from the endless distractions of social media, and all the mental pressure that comes with it.”
Raj Goyle, a former Kansas state lawmaker and founder of Phone Free New York, which supports the ban, welcomed Ms. Hochul’s proposal but said it needed more teeth — something he thought would include in the legislative process.
“There needs to be a system to ensure that the law is being enforced,” said Mr Goyle. “It will be disappointing if the policy only exists on paper but in reality they have not really done what they wanted to do.
The revenue from the congestion charge goes to fund the Metropolitan Transportation Authority’s infrastructure plan that runs through 2024. Last month, Carl E. Heastie, Speaker of the House -National, and Andrea Stewart-Cousins, the leader of the majority of the Senate, rejected the proposal of the capital of the power. until 2029, citing the plan’s $33 billion deficit, which “can be resolved during the upcoming legislative session in the context of state budget negotiations.”
“We have to get answers, and I think everyone knows that now,” Ms. Stewart-Cousins said.
Ms. Hochul’s proposed budget does not go far enough to address the loophole, and she has said in recent weeks that it is up to lawmakers to make up their own minds. Mr. Washington, his budget director, said “we have to work with the MTA and the Legislature to come up with a new plan.”
The budget proposal is the beginning of annual negotiations between the governor and legislative leaders on how to spend about $250 billion through fiscal year 2026. Last year, the The MPs had a budget deadline on April 1 and the talks continued for three weeks.
Mr. Heastie said he was focused on keeping the budget balanced but that Ms. Hochul’s proposal was “a good start,” adding that nothing “jumped out at me that was troubling.”
