ALBANY, N.Y. (AP) New York Gov. Andrew Cuomo on Tuesday proposed budgeting $137.2 billion for the fiscal year starting April 1, a spending increase of less than 2 percent accompanied by business, property and estate tax relief.
The budget he released projects increases of 4.6 percent for federally and state funded Medicaid, to $58.2 billion, and 3.8 percent in aid for schools, to $21.9 billion. It keeps many other spending lines flat, including $714.7 million in state aid to cities, towns and villages.
“This year is relatively simple and straightforward,” Cuomo said. However, he said it contains more policy and program proposals than usual.
In education, the governor wants to spend $1.5 billion to establish statewide prekindergarten programs over the next five years while spending $720 million to expand afterschool programs. A $2 billion bond act subject to voter approval in November would bring broadband and computers to classrooms.
He would cut the tax rate on net corporate income from 7.1 to 6.5 percent, establish a 20 percent real property tax credit for manufacturers and eliminate net income tax on upstate manufacturers. He would raise the estate tax exemption from $1 million to $5.25 million while cutting the top rate from 16 percent to 10 percent.
The budget proposes a two-year property tax freeze through state rebates to homeowners in local jurisdictions that stay within a 2 percent tax increase cap.
“This budget recognizes and believes that tax relief is an economic growth strategy that is working for our state,” Cuomo said.
His proposal Tuesday kicks off months of negotiations in which the governor and state lawmakers will try to maintain their three-year streak of reaching a final budget deal by the start of the state fiscal year April 1.
Cuomo has said the state can amass a $500 million budget surplus this coming year if lawmakers agree to limit spending increases to 2 percent. The governor said that would allow surpluses to grow to $2 billion in three years.
Counted separately from the budget, the administration estimates another $2.4 billion in federal recovery funds for rebuilding from Superstorm Sandy and $2.5 billion for New York’s implementation of the federal health insurance overhaul law.
On prekindergarten, Cuomo said existing state revenues would fund the program. That differs from the proposal by New York City Mayor Bill de Blasio to fund citywide prekindergarten with a tax surcharge on those earning $500,000 or more. De Blasio said Tuesday that Cuomo’s proposal is commendable but that he wants to continue seeking the tax hike because he’s concerned the money Cuomo’s talking about is not dedicated and could be shifted around down the road.
Lawmakers are likely to seek some changes to the spending plan in the coming months. Democratic Assembly Speaker Sheldon Silver has said his conference will need to examine the details of the proposed tax cuts to make sure the state can continue to adequately support education and health care.
The budget proposal also details the governor’s ambitious plans to rebuild New York’s infrastructure in the wake of mass flooding like that from Superstorm Sandy. Cuomo wants to fortify coastal infrastructure and to replace and repair 104 older bridges statewide. He also wants Metro-North Railroad to expand to New York City’s Penn Station.
Highlights of New York Gov. Andrew Cuomo’s 2014-15 budget plan:
— Total proposal: $137.2 billion.
— Total growth: 1.7 percent.
— A projected surplus of more than $300 million in the current year, growing to $2.7 billion by 2018.
— A 3.8 percent increase in aid for schools, to $21.9 billion.
— A $2 billion bond act that would bring broadband and computers to classrooms if approved by voters.
— An increases of 4.6 percent for federally and state funded Medicaid, to $58.2 billion.
— Tax and assessment reductions that will provide property, business, and estate tax relief.
— A public campaign financing system based on New York City’s model with contributions of up to $175 would be matched $6 to $1.
— A total of $2.2 billion in spending over five years to fund both the after-school program and universal pre-kindergarten statewide.
— An end to standardized testing for students in kindergarten through 2nd grade.
— Establishing a panel to review the implementation of the statewide Common Core standards.
— Spending $15 million to plan for a new College of Emergency Preparedness, Homeland Security and Cybersecurity.
— Scholarships totaling $8 million at public colleges for the top 10 percent of high school graduates who pursue careers in science, technology, engineering or math and agree to work in New York for five years.
— Reforming and extending for 10 years the Brownfield Cleanup Program.
— Adding $4 million would be added to the state’s Environmental Protection Fund
— Seeking an additional $486 million in federal funds to replace and repair about 100 flood-prone bridges.
— Seeking $1.4 billion from the federal government to harden the state’s power grid against extreme weather.
— Projects totaling $147 million along coastlines and waterways to provide flood control and critical infrastructure.
— Start a multibillion dollar overhaul of New York’s mass transportation systems and New York City’s airports, including protecting them against severe weather.
— Include $39 million for grants to encourage municipal consolidations and regional services and tax credits for residents of local governments that fully dissolve or consolidate.
— Hold public safety agency spending steady at $4.7 billion.
— invest $10 million in technology for state and local law enforcement agencies to share information.