By Charles Switzer
9:11am PST, Jan 22, 2025
'Blame Game' Politics Returns
Governor Kathy Hochul unveiled a $252 billion dollar budget proposal for New York State, marking an 8.3 percent increase from the previous year and a 16 percent rise since her initial proposal in 2022, The New York Post reported.This ambitious plan emphasizes "affordability" and includes several initiatives to provide residents with financial relief.
Here's a breakdown of the governor's proposal and why any fallout should reportedly be directed to Washington, D.C.
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Key Components of the Budget
The budget introduces a series of measures designed to "alleviate economic pressures" on New Yorkers. Here's a breakdown:Inflation Rebate Checks: A $3 billion dollar allocation for one-time payments of $300 dollars to single filers earning up to $150,000 dollars annually, and $500 dollars for joint filers with incomes up to $300,000 dollars.
Income Tax Reduction: A proposed 0.1 percent tax cut for single filers making under $215,400 dollars and married filers earning under $323,201 dollars.
Child Tax Credit Expansion: An $800 million dollars investment to extend the child tax credit by up to $1,000 dollars for children under four years old.
Universal Free School Meals: A $120 million dollar provision to offer free school lunches to all students, regardless of income.
Reliance on Federal Support
A significant portion of the proposed budget depends on federal funding, particularly for programs like Medicaid and education. Governor Hochul expressed concerns about potential policy shifts under the second Trump presidency that could affect this funding.She emphasized the need for federal assistance, stating, "Those who are hurt need to raise their voices and direct that anger at Washington and push their members of Congress to fight for them because New York and other states will simply not be able to shoulder these costs on our own."
Economic Implications and Concerns
While the budget aims to address affordability, experts have raised concerns about its long-term sustainability. The Citizens Budget Commission President Andrew Rein cautioned that the plan could weaken New York's fiscal stability due to increased spending and reliance on uncertain federal support.State Comptroller Tom DiNapoli took to X and highlighted potential challenges, noting possible budget gaps as the governor seeks to increase income tax on high earners.
Impact on Undocumented Workers
The budget proposal reveals that New York has approximately 470,100 undocumented workers, constituting about 15 percent of its workforce. Governor Hochul expressed concern that President Donald Trump's plans for a crackdown on illegal immigration could severely impact the state's economy by exacerbating labor shortages and population loss.Many undocumented workers are employed in crucial sectors like construction, housekeeping and personal care, and their potential deportation could disrupt these industries.
A commenter on Facebook pushed back on Hochul's pivot and stated, "She is just setting this up to be blame game politics as usual. Get everyone's hopes up with fantasies but shift it all to Trump when the handouts get shut down. Been here, done that."
Political Context and Future Outlook
Governor Hochul's budget proposal comes as she prepares for her 2026 reelection campaign.The inclusion of various financial relief measures is seen by some as an effort to bolster her political standing. However, the reliance on federal support and the potential for policy changes under the Trump administration introduce elements of uncertainty.
As the budget moves through the legislative process, it will be subject to negotiations and revisions with a final version expected by April 1.