If the budgets proposed by the state Senate and Assembly are any indication, then New York is about to spend a record amount of money in the coming year.

The state Assembly has released a $208.3 billion All Funds budget proposal that increases spending $12.2 billion, or 6.3%, from Gov. Andrew Cuomo’s executive budget proposal. The state Senate’s one-house budget, meanwhile, increases school aid alone by $5.7 billion. Both proposals come with a slew of new taxes on high wage earners — the Senate raises $8.2 billion in new taxes in 2021-22 while the Assembly raises roughly $7 billion in new taxes.

“There’s no way to justify a more than $6 billion increase in taxes, much of which will never be realized as taxpayers and businesses continue to flee New York for states with lower tax and regulatory burdens,” said state Sen. George Borrello, R-Sunset Bay. “In a time when we should be focused on fiscal responsibility, the Senate budget proposal increases state spending to a record-breaking $210 billion — $14 billion in new spending above and beyond even the executive budget proposal.”

Cuomo has said the state needed $15 billion in federal aid in the most recent federal stimulus bill to balance the state’s budget, and the state will actually receive about $12.6 billion in direct federal aid. During a news conference Monday, Cuomo mentioned the type of revenue increases proposed by the legislature and how he will weigh those proposals.

“There are significant revenue raising proposals,” Cuomo said. “How you raise revenue can actually raise revenue or can cost you revenue. If you’re not careful with the way you do it, you may actually lose money for the state because businesses and residents will make changes. There are also pieces of legislation we have been trying to get done for a long time that we have to get done this year – passing marijuana reform and legalizing recreational marijuana. We tried it for the past three years, we have to get it done this year. There’s been too many young lives that have been ruined because of the marijuana laws.”

ASSEMBLY PROPOSED BUDGET

The Assembly budget proposal includes increasing the top income tax rate in the state from 8.82% for single filers earning more than $1 million and couples earning more than $2 million to 9.85%. It would also establish two new brackets as follows: a 10.85% bracket for taxpayers between $5 million and $25 million and 11.85% for taxpayers over $25 million. This would generate at total of $4.3 billion. A new 1% surcharge on capital gains for taxpayers earning more than $1 million per year would generate $700 million. A new 18 percent surcharge would be applied to corporate franchise taxpayers, corporate utility taxpayers and insurance taxpayers, generating $1 billion — though such a fee is likely to be reflected on the cable and utility bills paid by state residents. The Assembly proposal also reinstates the minimum business tax on corporate capital that will generate $150 million. Owners of high value second homes in New York City will be subject to a progressive state tax generating $300 million. An additional $171 million will be generated from a recording tax on mezzanine debt and preferred equity investments. Finally, the top rate of the state’s estate tax will increase from 16% to 20%, resulting in an additional $130 million.

The Assembly’s proposed budget includes $1 billion for a new Small Business Reopening and Relief Grant Program to help small businesses that have struggled to keep their doors open over the last year. It would also set aside $500 million of the fund for companies that fall into priority categories. The proposed spending plan would invest $100 million in a new Arts Recovery and Revitalization Program to assist with reopening efforts of various arts organizations and to provide financial support for the conversion of new outdoor venue spaces. The Assembly budget would direct up to $1.8 billion in anticipated federal child care to priority areas, including expanding access to families earning up to 85% of the state median income and other groups not currently eligible for subsidies. The Assembly plan also includes $50 million for the COVID-19 Recovery Workforce Initiative to ensure that funds are directed toward those who have been most impacted by the economic fallout due to the pandemic, including women, minorities, and those who have been receiving unemployment benefits for an extended period of time.

The Assembly budget includes $3.125 billion in combined federal and state dollars to provide rent relief for tenants and landlords, including $400 million for prospective rent, $150 million to reduce homelessness and $100 million to supplement $575 million in federal mortgage relief in the most recent federal stimulus, for a total of $675 million for mortgage relief. The Assembly’s spending plan proposes $1.275 billion to create a fund for New Yorkers who do not have access to unemployment, federal stimulus funds and other assistance programs during the COVID-19 pandemic. Under the federal Consolidated Appropriations Act of 2020, New York received $1.3 billion in Emergency Rental Assistance to aid eligible renters with rental arrears, utility and home energy costs or arrears, future rent and other housing expenses. The spending plan includes a $100 million carve out in rental assistance for distressed landlords whose tenants failed to pay rent, or otherwise did not qualify under the parameters of the rent relief program. It would also increase homelessness vouchers to $200 million.

The proposed budget increases Foundation Aid by $1.4 billion and fully phases Foundation Aid in over three years. As part of this increase, the Assembly’s plan would provide that school districts receive at least 60% of their Foundation Aid funding for 2021-22. Foundation Aid would

SENATE PROPOSED BUDGET

High-wage earner tax increases are similar in the Senate’s budget proposal compared to the Assembly.

School aid in the Senate’s proposed budget increases aid $5.7 billion (20.5%), including a $1.37 billion (7.4%) Foundation Aid increase and $3.85 billion in federal Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act funding. The Senate provides $3.5 billion more School Aid than the Executive proposal, and utilizes federal aid to supplement, not supplant, state funding. state-funded school aid would increase to a total of $29.5 billion (a year-to-year increase of 6.6%). The Senate also proposes a three-year phase-in of Foundation Aid to ensure that all districts receive full Foundation Aid by the 2023-24 school year. Every school district is guaranteed a minimum 2.0% increase in Foundation Aid and every district is allocated at least 60% of their full Foundation Aid funding for the 2021-22 school year.

The Senate budget also includes $1 billion for small businesses, requiring the Public Service Commission to study the availability, affordability, and reliability of high-speed internet services and to publish a detailed internet access map of the state; provides an additional $100 million to New York State Council on the Arts for grants to non-profit cultural organizations and $10 million for the Arts and Cultural Facilities Improvement Program to provide facility enhancement grants to arts and cultural organizations, administered by the New York State Council on the Arts. The Senate also supports the use of federal funds for grants to arts institutions and arts-related businesses to cover operating expenses, including labor and benefits, and make physical improvements necessary to meet COVID-related health and safety standards.

Senators also propose advancing language to accelerate the three remaining casino licenses for the downstate region and modifying the Executive proposal regarding alcoholic beverages in movie theaters by replacing it with a proposal that would authorize the sale of wine and beer in movie theaters.