Overview
- The proposal extends the 7.25% top corporate franchise tax for three years but leaves income and sales tax rates unchanged.
- Hochul commits $4.5 billion to expand child care, including a New York City '2-Care' program for two-year-olds and added pre-K support.
- State Medicaid spending would rise about 11.4% to offset federal reductions and maintain coverage for those shifting off federal programs.
- Budget officials cite stronger-than-expected revenues and $14.6 billion in reserves, and the plan would tax nicotine pouches at the cigarette rate.
- New York City Mayor Zohran Mamdani is urging taxes on wealthy residents and corporations to close a projected multibillion-dollar city gap, foreshadowing negotiations before the April 1 deadline.