Governor Cuomo unveiled his 2021-22 Executive Budget proposal today. As he has for months, the Governor called on Washington, DC to fill New York’s $15 billion budget gap because of COVID-19.
Cuomo is advancing two budget plans given the uncertainty of federal funding to NYS. In his COVID-19 response plan, President-elect Biden has earmarked $350 billion for aid to states and localities.
Cuomo’s first plan – officially delivered to the Legislature – assumes a federal allocation of $6 billion. Cuomo calls this the worst-case scenario and would result in a mix of cuts, tax increases on high-earners, and borrowing to close the $9 billion gap.
The second plan assumes a federal allocation of $15 billion, closing the budget deficit. Cuomo said he would sue the federal government if the state does not receive a $15 billion allocation asserting the state’s fiscal crisis is the result of federal negligence.
Specifically, Cuomo is calling for:
- More than $2 billion in new revenue including personal income tax increases on New Yorkers with taxable income above $2.15 million and freezing the scheduled middle-class tax cuts for one year
- A $130 million Pandemic Recovery and Restart Program to provide:
- $50 million in tax credits for small business rehiring
- $50 million in tax credits for restaurants impacted by closures
- $30 million in tax credits for musical and theatrical productions
- Incentivizing the production of medical equipment in NYS to help the state be better prepared for the next public health crisis
- Expanding accessibility to tele-health
- Providing incentives to employers creating childcare programs
- Legalizing the adult recreational use of cannabis which will generate $350 million annually when fully implemented. Cuomo proposes setting aside $100 million in a social justice fund.
- Authorizing mobile sports wagering which will generate $550 million annually
- Allocating more than $300 billion to fund a five-year infrastructure plan
- Funding new rounds of Regional Economic Development Councils and the Downtown Revitalization Initiative
- Mandating low-cost broadband package for low income New Yorkers
The Governor also called on Congress to repeal the elimination of the deduction on state and local taxes (SALT) that was passed as part of tax reform in 2017.
The BNP will continue to keep you posted as the state budget process moves forward.
The Buffalo Niagara Partnership is committed to providing employers with the latest information and resources to help deal with COVID-19 and the impact on our community, state and nation. Visit our resource page for the most up-to-date information.