The proposed property tax relief credit would apply to low- and middle-income homeowners, and some elderly taxpayers. In New York City, an average benefit of about $425 would apply to 479,000 households, while more than two million households outside the city would receive an average benefit of about $970.
The state budget often becomes a vessel to pass a raft of nonfiscal priorities that might be more politically difficult for lawmakers to pass individually. Ms. Hochul’s proposal, for example, would extend mayoral control of the New York City school system for another four years and puts forth a constitutional amendment to impose term limits on statewide elected officials, including governors.
Yet some fiscal experts criticized Ms. Hochul for not proposing more tax cuts as a way to stem the state’s long-term population loss, which has created fears that it could hurt the state’s tax base.
“It’s a missed opportunity to provide a clear signal that New York is serious about making its tax rates more competitive relative to states that people are migrating toward,” said Peter Warren, the research director at the Empire Center, a conservative-leaning think tank.
Ms. Hochul’s proposal was also criticized by one of her Democratic challengers, Jumaane Williams, the New York City public advocate who is running to her left, for not including additional tax increases on the wealthy. He said that Ms. Hochul was relying on “a one-time infusion of federal money to fund a series of temporary solutions to problems that aren’t going away.”
The budget proposal did clear the way for three new casinos in New York State, likely downstate. The move, which accelerates the existing process by a year, could bring significant revenue to the state.
The largest outlays were the significant investments in education and health care, the largest components of the state budget. The state predicted it would spend $31.3 billion on school aid — a record number, which includes an increase of 7 percent over the past year. Medicaid spending will rise by more than 6 percent, for a projected total of $26.5 billion.