N.Y. Legislature seeks to increase school aid beyond Gov. Kathy Hochul's budget proposal

ALBANY — The Democratic majorities of the Senate and Assembly on Tuesday proposed increases in spending on schools and other services beyond Gov. Kathy Hochul’s executive budget, while preserving versions of Hochul’s middle class tax breaks and increasing taxes on the wealthiest New Yorkers and corporations.

The Senate and Assembly will also negotiate several of Hochul’s policy proposals within the $252 billion budget plan she made in January, including one to ban cellphones in classrooms from "bell to bell."

In aid to schools, Hochul proposes an $825 million or 2.4% increase in her budget. The Assembly proposes $2.7 billion more than current funding and the Senate proposes a more than $1 billion increase over current spending on schools of more than $34 billion.

The independent Budget Commission said the Senate and Assembly proposals would increase state operating funds by 13.7%, or four times inflation over the current year’s spending, in a perilous economic period.

"New Yorkers don’t need unaffordable spending or another round of new tax increases," the commission’s Andrew S. Rein said in a written statement. "They need New York to live within its means."

The Democratic leaders of the Senate and Assembly will now negotiate behind closed doors to seek a budget deal that is due by the beginning of the fiscal year on April 1.

None of the proposals cut spending in anticipation of what state officials expect will be deep slashes in federal aid under President Donald Trump and the Republican-controlled Congress. That may require later amendments to the budget, state officials said Tuesday.

State Comptroller Thomas DiNapoli warned in a February analysis that federal aid cuts "may have a large impact on the state’s finances and on New Yorkers’ quality of life."

The Assembly supports Hochul’s proposal to issue one-time relief checks of up to $500 to New Yorkers for joint filers making up to $500,000, and $300 for single filers making up to $150,000. The checks would be sent in the fall and be based on 2023 tax year income.

The Senate, however, wants to alter that system. The Senate proposes to send the checks to senior citizens and continue for three years, not one. The Senate would increase other tax breaks for lower income families and for single filers. That would result in most New Yorkers getting a tax break, Senate Majority Leader Andrea Stewart-Cousins said in a news conference.

Areas of agreement

The legislative proposals broadly support Hochul’s idea to spend $3 billion on tax relief for middle class families making less than $323,000 a year. The Assembly, however, proposes an immediate cut while Hochul wants to phase in her cuts.

The legislative leaders agree on similar plans to increase taxes on corporations with annual income of at least $5 million. Both chambers agree with Hochul to also provide tax breaks for small businesses.

The legislative leaders also agree on versions of Hochul’s proposal to increase the tax on New Yorkers making more than $2.1 million. She proposes to extend a temporary surcharge on the wealthiest New Yorkers that was created to help the state rebound from the COVID-19 pandemic.

Hochul wants to extend the surcharge she said brings in $5 billion a year to 2032.

Assembly Speaker Carl Heastie and Stewart-Cousins said in separate news conferences that they substantially agree with the finances in Hochul’s budget.

"This is still the best executive budget presented to the legislature in my 25 years," Heastie said.

"In a time of uncertainty,"  Stewart-Cousins said, Hochul presented a "good-faith budget" and the Senate’s response is "strong and responsible."

 Policy changes

The sticking point will be in policy changes Hochul seeks in a budget deal. Under the state constitution, governors have extraordinary leverage to enact their policy changes when included in a state budget, rather than if the proposals were subject to individual votes by the legislature.

The key policy issues include Hochul’s plan to ban students’ cellphones in school to combat inattention and disruptions in class. Stewart-Cousins and Heastie, however, said there is no agreement on whether to enact a uniform statewide ban or leave the details to school districts.

There was no agreement on a major financial sticking point: How to fund a multibillion capital plan for the Metropolitan Transportation Authority to renovate the subways, Long Island Rail Road and other mass transit.

By Michael Gormley

michael.gormley@newsday.com@GormleyAlbany

Michael Gormley has worked for Newsday since 2013, covering state government, politics and issues. He has covered Albany since 2001.