This Week in Albany

Week ending January 16, 2015

State Budget Update

Governor Cuomo has announced that he will present his state budget proposal on the same day as his “State of the State” speech next week. Typically the two events are held at different times.

The Governor has already announced several proposals that will be central to his budget proposal.

The first proposal is a $1.7 billion property tax circuit breaker program that would provide property tax credits for homeowners and renters paying more than six percent of their income toward property taxes. For renters, the Governor’s plan would assume that 13.75% of rent payments can be attributed to property taxes. Credits would be provided on a sliding scale based on income. Outside of New York City, taxpayers will have to reside in municipalities operating under the state’s property tax cap to be eligible for the circuit breaker credit.

The second program is $1.5 billion in economic development funding for upstate communities. Seven regions will compete for the funding, with three being awarded $500 million each. The four regions whose plans are not approved will not receive any of the $1.5 billion.

It is unclear where the funding for these programs will come from.

Additionally, the Governor plans to spend $500 million of the $5 billion surplus from bank settlements to expand broadband internet service in the state.

The Governor has said that in addition to these programs, he plans to reform the state’s public education system, address police safety and the grand jury system, and provide even more tax cuts for businesses.

Please check the Legislative and Political Action Department’s page on the CSEA website for updates on the budget as they become available.

Week at a Glance

The legislature will be in session on Wednesday and Thursday next week following Monday’s holiday. Governor Cuomo’s combined “State of the State” speech and budget presentation will take place on Wednesday afternoon.