ALBANY – Gov. Andrew Cuomo is proposing property tax credits for 1.3 million homeowners across the state; and in the Southern Tier, investments of $20 million for clean energy competition and $30 million for farmland preservation and development as part of his 2015 economic opportunities agenda.
Cuomo laid out a $141.6 billion budget that, if passed, would limit state spending to 2 percent, cut small business taxes from 6.5 percent to 2.5 percent, and supply more than $1 billion in state aid to schools contingent on their adherence to stricter performance policies. He also proposed $1.5 billion for full-day pre-K programs for four-year-olds and $25 million for pre-k for high-need three-year-olds.
The governor’s joint opportunities and state budget proposal unveiled in Albany on Wednesday also calls for a $500 million match to leverage $500 million from private investors to increase availability of broadband access in rural New York. More than 500,000 homes and 4,000 businesses in the state currently do not have broadband access, he said.
Since taking office in 2010, Cuomo cited that unemployment statewide has dropped from 8.9 percent to 5.9 percent (2.4 percent in the Southern Tier). Moreover, he said the state government held spending below an average 2 percent for four years, and the tax rate is the lowest it has been in 50 years.
“New York is now a state of opportunity,” he said. “Because we spend less, we can tax less and we have made historic progress in that regard.”
For homeowners, Cuomo put forward a $1.7 billion dollar property tax credit program to provide tax relief. The plan calls for a real property tax credit for households whose property tax burden exceeds six percent their annual income. People with incomes below $250,000 would qualify, and the credit is valued at up to 50 percent the amount by which property taxes exceed the six percent burden threshold.
“This is really meaningful, significant tax relief that will make a difference in people’s lives and send a strong signal that the New York we brought you for the past four years is the New York we want to continue,” he said.
Other highlights of Cuomo’s agenda include:
• Raising state minimum wage to $10.50 (11.50 in New York City)
• Adding $110 million for the Start-Up New York program to entice small business growth
• Linking community colleges with employers in that region to connect graduating students with the jobs that are in demand
• Offering partial loan forgiveness for SUNY/CUNY students who enter the teaching profession and teach in a New York school for at least five years
• Increasing the environmental fund by $172 million
• Designating $50 million for farmland preservation and development ($30 million for the Southern Tier and $20 million for the Hudson Valley)
• Earmarking $50 million for upgrades to the New York State fairgrounds
• Increasing emergency food access funds by $4.5 million
• Supplying $400 million for hospitals, particularly in upstate NY
• Creating the NY Office of Faith-Based Community Development Services to streamline grants and services to faith-based organizations
• Adding another 100 to the cap for the number of charter schools in the state (currently capped at 460)
• Restructuring the teacher evaluation process as well as teacher tenure to remove bad teachers
• Passing the DREAM Act which would allow undocumented students to apply for college tuition assistance
• Increasing the age of juveniles convicted of felonies and held in state prison from 16 to 18
• Earmarking $40 million for the Port of Oswego and upgrades to the rail yards in Syracuse and Binghamton
• Handing over failing public schools to nonprofit or state-appointed turnaround experts to get the school up to par
While the Governor’s agenda is getting some credit from Chenango County’s state representatives, many say they are skeptical that upstate is getting what it deserves in the wake of recent decisions that may have created jobs in the area.
“Overall, I think the governor’s presentation was very policy-heavy and aggressive with respect to economic development opportunities,” said Assemblyman Clifford Crouch (R-122nd District).
Crouch said he favors Cuomo’s proposal to expand broadband in rural areas and the idea to invest in the Binghamton rail yard, as well as learning more about the $30 million proposed for farmland preservation. When it comes to tax relief, however, he said the governor “has missed the mark.”
“The governor is blaming inefficiencies and duplication of local governments as the main driver of high property taxes. In actuality, the main culprits of our high property taxes are the costs that are passed down by the state to municipalities ... The biggest cost-drivers of this state’s high property taxes are unfunded mandates which translate to higher tax bills for homeowners, businesses, schools and localities,” Crouch said.
Similar sentiments were echoed by Senator James Seward (R-51st District). “Overall, the governor hit on a number of important themes, but we have a lot of details to work out,” he said, applauding the governor for initiatives like the property tax cap and broadband funding. But issues such as mandate relief and the proposal to raise minimum wage need to be addressed, he said.
“The governor’s push for a higher minimum wage would stymie that small business growth,” said Seward. “A new increase just went into effect at the start of this year, and another is on the way in January 2016. Let’s wait and review how these increases influence our economy and wage earners before plowing forward with another hike.”
State Senator Tom Libous (R-52nd District) said, “At first glance, I like some of the ideas the governor mentioned – cutting property taxes, investing in our small businesses and infrastructure.”
Libous said he will be examining the budget in closer detail and seeking feedback from constituents in the coming weeks. “As always, my top priority will be advocating for more economic development and investment in our region. We need jobs and careers in the Southern Tier,” he added.