Governor Kathy Hochul recently publicized her proposed budget for the upcoming financial year. Hochul drew up a proposed budget of $227 billion that still has to be negotiated. However Hochul already faces a few challenges with her final budget. Certain taxes and increases have to be discussed and negotiated with her Democratic peers.
Governor Hochul has stated that she is opposed to increasing personal income tax for the rich while her progressive party members want to see an increase.
Assemblyman Ron Kim would like to see a tax increase for the wealthy that will see the funds directed to schools, infrastructure, and health. This would be done to support low income New Yorkers who are already bearing the brunt of high costs of living caused by inflation. “More and more people are waking up to the sad truth that there is no American dream in New York,” he said. “They’re working 12-14 hour shifts and not getting anywhere.”
Governor Hochul’s budget includes tax increases for New York City’s metropolitan area that will contribute toward the MTA’s finances. Governor Hochu has also proposed a tuition increase at the state’s public colleges and universities. These taxes and increases have proved unpopular with Democrats. “Those are all regressive taxes that rely on working New Yorkers and she doesn’t want to touch the top 1%,” Kim said.
Republicans have also had issues with Governor Hochul’s proposals. The proposed budget included a minimum wage increase tied to inflation. GOP members have said the proposed increases in Governor Hochul’s budget are not good for business.”I think you have to look at all of it through the lens of a possible minimum wage hike coming in this budget,” Assemblyman Ed Ra said. “So, as a package, I think that’s very concerning to businesses.”
Negotiations for the final budget will continue until it is passed before the end of March. Governor Hochul will have to walk a tightrope to ensure the final budget that passes is well balanced and caters to New Yorkers as much as possible.