Budget Pressure

The Story

New York State’s new budget is predictably unwieldy and opaque. While preserving most of Governor Cuomo’s spending priorities, it thankfully does not impose excessive new taxes on already overtaxed residents. But the budget does reflect the state’s fiscal pressures, which Albany has done little to relieve.

The Facts You Need to Know

  1. Earmarks: The budget appropriates $425 million in extra money for the State and Municipal Facilities Program, a slush fund through which Cuomo rewards political allies. Read more.

  2. Uncapped: School districts continue to work around the state’s property-tax increase cap by floating taxpayer-backed bonds that allow them to spend more. Read more.

  3. SALTy: To get around new federal deductibility limits, the budget includes an optional employer-payroll tax so complicated and narrowly targeted as to be almost useless. Read more.

“As usual, crucial financial details were unclear when the Legislature voted on the final bills.”

E.J. McMahon, Empire Center for Public Policy founder and research director

Twitter Take

The Past is Present

New York’s SALT Substitute By E. J. McMahon (January 26, 2018)

“Anxious to retain one-percenters, Governor Cuomo rehearses some clumsy tax solutions.”

And in other news...

“The mayor is giving the department six months to implement a policy to house the inmates safely, the city said, as an effort to bring the Department of Correction into compliance with an executive order requiring city agencies to allow people to use restrooms and facilities consistent with their gender identity.”

 

 

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