Two weeks ago, Governor Kathy Hochul announced a budgetary offer This would lead to state spending at $ 254 billion, up more than 5% compared to last year, and include its key priorities for a cellular telephony ban, modifications to criminal discovery laws, flexibility for the involuntary confinement of mental sick people and the funding of the MTA capital plan.
But with the final passage of Friday of the budget for the financial year which started on April 1, the governor and the legislator also agreed with a rescue plan for the status insurance program, the first coupons for state housing assistance and an improvement in the tax alternatives of the companies that the governor has supported, but not the real estate incentives supported by the administration of the mayor Eric Adams.
Meanwhile, the secret process that produced the budget without public debate came to criticize criticism.
“New York’s budget is more than five weeks late. Worse, it is full of decisions made in the full secret of the Democratic Party majority,” the group of good government reinvents Albany in a statement.
Building the state unemployment insurance program is the biggest post-buin movement and the one with the most ramifications. New York owed the federal government for $ 6 billion so that the money he borrowed during the pandemic to pay services and slowly reimbursed him thanks to an increase in tax insurance tax on employers.
Who have both overwhelmed the activities and prevented the state from increasing the maximum weekly advantage of the current level of $ 504 per week.
Now the state will take $ 7 billion from its reserves to repay the debt and stabilize the fund, and Democrats should request an increase in services before adjourning in June.
This reduces the reserves of the state by one third to around $ 14 billion at a time when a recession could reduce tax revenue and republicans seek to reduce the $ 90 billion in federal aid included in the budget.
Hochul defended the dive into the reserves.
“I said we would use them for a rainy day,” Hochul told journalists on Tuesday. “Yes, it’s raining.”
The anti-pauvenies and real estate groups have finally succeeded in an effort of several years to convince the governor to create a program of housing vouchers across the state level, although it has agreed to allocate only $ 50 million for the first of the four years authorized in the legislation. However, the program could become a tool to replace the money from the good federals, which is threatened in President Donald Trump Budget proposed.
In return, the legislative assembly agreed to authorize the rental buildings built after 1996 containing at least 100 units to convert into condominiums until 15% of the tenants agree and that a certain percentage of units is reserved as affordable.
Cooperative and Condo conversions stopped after the 2019 rent law, which, which, in addition to eliminating most of the tracks to withdraw the rental apartments for the regulation increased to 50% of the tenants who had to accept a conversion. This change, for a long time pushed by real estate groups such as Real Estate Board in New York, is the first major modification of this law. It also helps to meet the demands of particularly black legislators outside Manhattan for a way to help their voters become owners.
Hochul won an extension of the controversial film and television production of $ 700 per year
Relief of the theatrical production tax of temporary theatrical production in pandemic established in 2020 is increased by a third to $ 400 million in total and extended until 2027.
But the Legislative Assembly did not include the extension of the REAP program, which offers a tax credit of $ 3,000 for 12 years for each employee that a company moves in most regions north of the 96th street in Manhattan and in the other districts, and which is strongly supported by Rebny and Adams administration.
He also refused to approve a new proposed credit from the Adams administration called race, abbreviation of the relocation assistance credit by employee. The race would authorize the City to provide a single credit of $ 5,000 per full -time worker for companies who were traveling to New York and renting at least 20,000 square feet in a building built before 2000 – an attempt to help fill offices drained during the pandemic.
Prospects remain good for the Legislative Assembly to approve of these tax reductions before adjourning next month, Rebny said in a statement.
Given the rock economy and threats to federal aid, the Legislative Assembly gave the Governor the power to reduce the budget in the event of a drop in income, although the legislature can vote to reject or replace its reductions.