Gov. Andrew Cuomo and Albany legislative leaders on Tuesday announced a deal on the state’s o🅘verdue budget that includes about $4 billion in new taxes, legal sports betting and as much as $15,600 each in unemployment benefits for illegal immigrants.
The $212 billion spending plan, which was due April 1, dwarfs💜 last year’s $194 billion budget, with officials blaming the cor🤪onavirus crisis for the huge surge in outlays.
Lawmakers began voting on a series of 10 budget bills in the state Senate and Assembly on Tuesday afternoon and had passed four by late into the night — meaning the process would continue into Wednesday.
Those bills 🍬will contain the most controversial measures, including tax hikes on higher earners and big businesses.
Individuals earning more than $1 million a year and couples e🃏arning more than $2 million would see their personal income tax rate rise from 8.82 percent to 9.65 percent.
Two new brackets would also tax income over $5 million at 10.3 percent and income o༒ver $🐎25 million at 10.9 percent, with all provisions to remain in effect until 2027.
The corporate franchise tax would also rise from 6.5 per꧙cent to 7.25 percent until 2024, but only for businesses with more than $5 million in annual income.
State Senate Finance Committee chairwoman Liz Krueger (D-M🌊anhattan) defended the tax increases during an afternoon floor debate.
“This is not a tax increase on the vast, vast majority of New Yorke🌺rs,” Krueger said. “It’s a relatively small,💙 approximately 50,000 taxpayers who are on the wealthiest end of the scale, even during a pandemic and economic meltdown.”
But critics — including two Democratic mayoral candidates, Andrew Yang and former Citigroup executive Ray McGuire — have warned that the tax hikes could cost the city much-needed revenue if ꩲresidents and businesses seek greener pastur꧒es in lower-tax states and cities.
Citizens Budget Commission president Andrew Rein also accused lawmakers of failing to “appropriately leverage the opportunity provided by the i♉nfusion of funds” from President Biden’s $1.9 trillion COVID-19 relief package, which earmarked $12.6 billion to bail out the state.
Negotiations over smartphone-based sports betting saw Cuomo retreat from his demand for a single operator, with the new𝐆 plan allowing for two, each of which could offer four different gambling apps.
Sen. Joseph Addabbo Jr. (D-Queens), who sponsored the legislation, said he hoped wagering could begin in time for “the start of the NFL season,” with projections calling for annual revenues to start at $99 million and reach 💫$500 million in four years.
Newly negotiated details of🐬 the controversial, $2.1 billion “Excluded Workers Fund” would limit it to providing unemployment benefits to illegal immigrants who couldn’t get federal stimulus checks, sources said.
Applicants would have to prov♑ide proof of New York residency before March 27, 2020, and other documentation to receive ༒a maximum payout of $15,600, or $3,200 if they have only partial proof.
Ex-cons, who were initially 💦eligible, are no longer part of the program, sources said.
“I am proud of the strides we have made in funding our schools, helping businesses rebuild, and protecting New York’s most vulnerable. Working and middle-class taxpayers will receive the relief they desperately need, while the wealthiest New Yorkers will help their neighbors. This budget makes New York better for all,” said state Senate Majority Leader Andrea Stewart-Cousins (D-Westchester) in a statement.