This week, Governor Cuomo introduced two budgets for Fiscal Year 2021-2022. As part of his delivery, the Governor outlined a plan to “reimagine, rebuild and renew” the State in the wake of the COVID 19 pandemic.
The two budget options are contingent on the amount of federal funding that New York can expect to receive from Washington: one assuming a federal aid package of $6 billion and another with the full $15 billion from Washington. The first budget would raise revenues through a wealth tax, cut expenses and rely on borrowing to balance the budget while the second supports a series of bold programs and infrastructure investments.
If the federal government provides New York with $15 billion, the Governor’s budget includes:
- $306 billion in major infrastructure investments;
- $1.3 billion rent relief;
- $130 for a Pandemic Reconstruction and Restoration Program including relief to small businesses, restaurant and arts and entertainment venues; and
- Creation of a public health corps.
Without federal support, the Governor’s budget would demand significant program cuts and a series of revenue raisers to support New York’s short fall.
Regardless the amount of federal funding, the Governor’s budget advocates the following initiatives to raise revenue:
- Mobil sports betting generating $500 million in State revenues;
- Legal Use of Adult Cannabis generating $350 million in funds; and,
- Subjecting short term rentals, like Airbnb bookings, to state and local sales taxes.
The Legislature will now hold a series of budget hearings to further examine Governor Cuomo’s proposals. The new fiscal year begins on April 1, 2021, and the budget must be enacted by that deadline.