The New York State budget is complete. The spending plan meets my central budget priorities— control spending, cut taxes and create jobs.
The budget also comes in on time for a third consecutive year, a major accomplishment that showcases the escalating efficiency of New York State government.
The fiscally responsible budget keeps state spending below the same two-percent cap placed on school districts and local governments.
The only way to reduce the tax burden on New Yorkers is to control spending.
The plan also provides significant tax breaks for the middle class, small businesses and manufacturers.
A new $350 family tax relief check will be sent to middle class families with children next year— direct tax relief.
The budget also extends the middle class personal income tax rate reductions enacted in 2011, which were due to expire next year.
These tax rate reductions provide 4.4 million taxpayers with $707 million in tax relief per year, and this extension will ensure that New York’s middle class income tax rates remain at the lowest level in 60 years.
On the job front, the new state budget will help strengthen our economy and create good paying jobs, because it includes many of the key initiatives included in my recently proposed “Blueprint for Jobs” plan:
Lower taxes on manufacturers. The budget cuts the corporate tax on New York manufacturers, helping them reduce costs and compete more effectively;
Energy tax relief. The budget reduces and then eliminates the 18-a energy tax surcharge paid by businesses over the next 3 years, rather than implementing a five-year extension as the governor had proposed.
This elimination of a major energy tax will provide our energy intensive manufacturing sector with major savings, and make New York a more competitive place to do business;
Job training. The plan increases funding for successful job training programs, helping to ensure a highly skilled workforce, and opening the door to a brighter future for thousands of New Yorkers;
Helping our heroes. The budget creates a tax credit to any business that hires a veteran returning home from military service. The credit will equal ten percent of wages paid, increasing to fifteen percent if the veteran is disabled;
New York State incubator program. The budget includes $1.25 million to provide operating support for the state’s business incubators and to create or designate 10 high tech business incubators at locations affiliated with higher education institutions with tax benefits for tenant businesses; Expanded agriculture marketing. My “Grown in NY” plan to strengthen the state’s agriculture industry called for expanding marketing efforts to promote New York foods and produce. The budget creates the new Market-NY initiative to better market New York grown farm products;
Workers’ compensation and unemployment insurance reforms. These new reforms will help reduce the cost of doing business for New York manufacturers. As a member of the joint budget conference committee on education, I am particularly pleased that our local schools received their fair share of state aid and will be better positioned for future years. Even in a tight budget year, the overall education aid package, a $1 billion increase, delivers for students, schools, and property taxpayers. Further, much of the aid increase is targeted at low and average wealth schools, many of which I represent, who need help the most.
The budget assists our local governments. Upstate highway departments are receiving their first increase in the Consolidated Local Street and Highway Improvement Plan (CHIPs) funding in five years. That means safer roads and bridges and improved infrastructure.
Mandate relief measures are also included that will help local elected leaders keep property taxes in check.
Overall, the budget is a pro-family, pro-jobs plan that keeps New York moving in the right direction. Additional budget information, including each individual budget bill and other summaries, can be viewed through my website, www.SenatorJimSeward.com.
