Overview
- State proposal holds income tax rates steady and seeks a three-year extension of the 7.25% corporate franchise surcharge.
- Medicaid spending would rise about 11.4% to help offset the projected $10.3 billion drop in federal funding this year.
- The plan commits $4.5 billion to expand child care, including launching New York City’s “2-Care” for two-year-olds and adding pre-K funding statewide.
- Budget talks now move to the Democrat-led Legislature as New York City Mayor Zohran Mamdani presses for new taxes on high earners and corporations.
- Other measures include taxing nicotine pouches like cigarettes, a 4.3% increase in school aid, proposed elimination of state taxes on tipped wages up to $25,000, and maintained reserves of $14.6 billion.