New York Governor Kathy Hochul will propose a $252 billion state budget that includes funding to help school districts implement policies restricting student cell phone use during school hours. The budget also includes tax rebates, income tax cuts, and increased funding for education and Medicaid.
New York Gov. Kathy Hochul will include funding to help school districts secure students’ cell phones as part of her $252 billion state budget proposal, set to be released on Tuesday. The plan would direct school districts to develop their own policies to separate students from mobile devices “from bell to bell,” said Blake Washington, Hochul’s budget director. The Democratic governor has been advocating for months to encourage children to put down phones at school.
The proposal is one component of a comprehensive spending package the governor will introduce on Tuesday, marking the commencement of the process where the state approves much of the year’s most crucial legislation. In the coming weeks, the state Senate and Assembly will present their own proposals, and they and Hochul will engage in negotiations to reconcile any differences before a final budget is voted on and signed. This year’s budget proposal reflects a relatively sound financial standing for New York, Washington stated. State officials last fall projected a deficit of roughly $1 billion for the upcoming fiscal year, commencing on April 1. However, a stronger-than-anticipated economy — including robust profits by Wall Street firms — has improved the financial outlook. The result is a $5.3 billion surplus that Hochul is proposing to allocate towards rebate checks for taxpayers (totaling $3 billion this year), an income-tax reduction to be gradually implemented over the next two years, and an expanded child tax credit, among other items. Tax rates would ultimately decrease by two-tenths of a percentage point for joint filers reporting less than $323,000 in income, Washington said. Hochul previously indicated this would lead to “hundreds” of dollars in savings. The governor’s budget proposal includes a planned 4.7% increase in school aid, as well as additional funding for Medicaid, which provides healthcare for low-income individuals. Higher Medicaid costs, jointly funded by the state and federal governments, have exceeded the allocated amounts in last year’s state budget. Washington attributed some of the increased spending to the expiration of COVID-related federal aid programs, coupled with the fact that approximately 900,000 more individuals have enrolled in the program since before the pandemic. Hochul is deviating from her proposal last year to revamp the formula used for distributing school aid, which could have reduced funding to certain districts as student enrollment declined. She also aims to provide grants totaling $13.5 million to school districts to offset the cost of securing cell phones, Washington said. Andrew Rein, president of the fiscal watchdog Citizens Budget Commission, stated that the surplus funds could be directed towards measures that would contribute to the state saving more money in the long term. However, he acknowledged that sending checks to voters is more politically appealing than addressing infrastructure needs or reducing debt. Perennial disputes over issues such as school foundation aid and funding for social service programs tend to dominate the governor’s negotiations with legislators in the state Assembly and Senate, both of which are controlled by Hochul’s fellow Democrats. Washington said Hochul would extend for five years higher tax rates on individuals reporting over $1 million in income. That surcharge, enacted in 2021, means millionaires residing in New York City currently pay the highest combined state and local income taxes in the nation. Progressive groups argue that tax increases are politically acceptable and could help make the governor’s proposals for child tax credits and universal school meals more sustainable over time. Michael Kink, executive director of the Strong Economy for All Coalition, stated that doing so would assist Hochul in assuming the mantle of populism. “Democrats need a real fight against real villains,” he said. “Taxing the super-rich and wealthy corporations, redistributing that wealth into tax breaks and tax credits and robust funding for services for regular working people, I think that’s a recipe for success.” Looming over the state’s budget is the threat of federal cuts to programs like Medicaid. Washington said if Congress implements major changes, New York would face difficult choices. “We’re in a mode where we’re going to be watching, we’re going to be vigilant,” Washington said. “There are headwinds. I don’t think anyone disavows that.
BUDGET CELL PHONES EDUCATION GOVERNOR TAXES NEW YORK
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