Late on Monday, March 10th, the Assembly and Senate released their One-House Budget Proposals, where each house got to lay out their budget priorities and decide which portions of Governor Hochul’s Executive Proposal they agree with and disagree with. Both Houses’ proposals were larger in total spending than Governor Hochul’s proposed $252 billion budget. The Assembly’s proposal came in at $257 billion and the Senate’s landed at $259 billion. Now that the One-House Proposals have been released, formal budget negotiations on a final budget will begin between Governor Hochul and the legislative leaders. While negotiations are underway, here is where the Senate and Assembly fall on some of the biggest proposals in Governor Hochul’s Executive Proposal:
Inflation Rebate Checks
In her Executive Proposal, Governor Hochul proposed sending one-time inflation rebate checks of $300 to single New Yorkers making less than $150,000 and $500 for married New Yorkers filing taxes jointly who make less than $300,000. As indicated by Assembly Speaker Carl Heastie last week, the Assembly agreed with the Governor’s proposal without making any changes. While the Senate agreed with inflation rebate checks, they modified the Governor’s proposal, making such checks only apply to senior citizens, and for the checks to last three years instead of being a one-time payment.
Middle-Class Tax Cuts
Governor Hochul originally proposed cutting taxes for the middle-class by 0.2% for joint filers making up to $323,200 and single filers making up to $215,400. The Senate agreed with the Governor’s proposal, but the Assembly proposed a 1% tax cut for New Yorkers in every tax bracket except the highest and lowest brackets.
Universal School Meals
Both Houses are on board with the Governor’s proposal to implement universal free school meals. The only change to the Governor’s proposal was made by the Senate, which would have more of the food used in the meals come from local farms.
Cell Phone Ban in Schools
One of the proposals Governor Hochul has spoken about the most is her proposal for a bell-to-bell cell phone ban in schools. The Assembly included an additional $25 million on top of the Governor’s proposed $13.5 million to help schools implement cell phone bans, but removed the Governor’s policy language. The Senate included language implementing a cell phone ban, but modified the proposal to give schools the option to allow cellphone use during non-instructional times such as lunch.
MTA Funding
Both Houses removed Governor Hochul’s multibillion-dollar investment for the Metropolitan Transportation Authority’s (MTA) long-term Capital Plan from their individual proposals, instead choosing to tackle the issue at a later date. “I told the Governor and leader that the three of us should ask Washington to help us, since they are so concerned about how the city’s transportation is,” Assembly Speaker Carl Heastie said. “We should first ask them to help, already knowing we’re going to be told no. Then at some point we’ll come back with some revenue choices to fund the MTA.”
Involuntary Confinement
The Governor’s controversial proposal to expand the use of involuntary confinement for homeless individuals and individuals with serious mental illnesses was removed from both One-House Proposals. Although, both Houses did add other proposals addressing mental health, including a 7.8% COLA increase for community-based agencies and their workforce, and “Daniel’s Law,” which would create up to 7 mental health first responder teams.
Buy Now Pay Later Loan Regulation
Both Houses agreed with the Governor that Buy Now Pay Later lenders need to be licensed and such loans need to be regulated. However, each House amended the Governor’s original proposal in different ways.
New Proposals
There were also several new proposals in the One-House Budgets. Some of the most notable new proposals include:
- The Senate included the Climate Corporate Data Accountability Act;
- The Assembly included a proposal to create New York Works Child Tax Credit, which would consolidate the Empire State Child Tax Credit, the Earned-Income Tax Credit and the dependent exemption into one combined credit for taxpayers;
- Both Houses included language to create a Housing Access Voucher Program as well as language to codify the Homeowner Protection Program;
- The Senate added a proposal that would have the State cover the cost of track-and-trace software for cannabis cultivators;
- The Assembly added language that would create the New York State Task Force to Study Cryptocurrency and Blockchain Technology;
- The Senate included a proposal that would create a $2,000 rebate for used zero-emission vehicles similar to new zero-emission vehicles;
- Both Houses increased funding for the Hunger Prevention Nutrition Assistance Program (HPNAP) and the Nourish New York Program to $75 million for each;
- The Senate proposed language that would expand the Doctors Across New York Program to include dentists;
- The Assembly included a proposal that would establish a loan repayment program for dentists;
- The Senate added language that would prohibit false or misleading food advertising, with special consideration for advertising targeted to children; and
- The Senate proposed language that would allow bars and restaurants to make limited purchases at liquor stores.