Here's What The State's $212B Budget Means For NYC

NEW YORK CITY — The state's massive $212 billion budget promises to significantly reshape New York City, tax its wealthiest residents and provide much-needed relief for thousands more.

Lawmakers and Gov. Andrew Cuomo on Tuesday reached a final deal on the budget — a sprawling piece of legislation that delivered long-sought progressive victories.

Mayor Bill de Blasio lavished praise on the budget during his Wednesday briefing. He called it a victory for working New Yorkers.

"This is the best state budget we've ever seen for New York City and the whole state of New York," Mayor Bill de Blasio said Wednesday.

But amid all the aid and support afforded to schools, child care programs, renters and small businesses in the budget, a tax increase on New Yorkers making more than $5 million a year prompted hand wringing about a potential upscale exodus from the city and predictions of doom.

Gov. Andrew Cuomo, who spent months during the coronavirus crisis pushing back against a wealthy tax hike, on Wednesday largely downplayed the budget's new taxes for the rich and corporations. A federal repeal of a cap on SALT — state and local taxes — will ease the blow, he said.

"When that happens there will be a net reduction in taxes," he said.

The tax increases will raise $3.5 billion in revenue next year and $4.3 billion in 2023, Cuomo said. Middle class New Yorkers will get a tax cut, he said.

State Sen. Liz Krueger, who represents parts of Manhattan, told Politico she's comfortable with passing taxes on the rich.

"We are asking people who have been doing the absolute best in our economy to give us slightly more in tax revenue," she said. "It won’t hurt them; they've already seen a significant cut in their taxes during the Trump administration."

Here's what else is in the budget.

School aid, child care funding, excluded workers

The budget restores direct foundation aid to New York's schools to the tune of $1.4 billion.

It's a long-sought goal by education advocates in the state and is part of a record $29.5 billion going to schools.

Roughly $13 billion in federal aid will also go to the state's school to address disruptions from the COVID-19 pandemic.

De Blasio called the direct aid — 75 percent of which will go toward high-need school districts — nothing less than the restoration of fairness for schools.

"Our kids are going to benefit over the next years in a way they've deserved for a long, long time," de Blasio said.

The city's share has yet to be announced, but as the largest school district in the state and country it likely will be significant.

The state budget also directs $2.3 billion in federal aid toward child care.

Lawmakers also secured $2.1 billion for hundreds of thousands of largely New York City dwellers who were excluded from stimulus and unemployment payments because of immigration status or incarceration.

"Essential workers never stopped working during the pandemic and kept the city and state running while putting their own lives and their families at risk," the Legal Aid Society said in a statement. "Despite their incredible sacrifice, they had to fiercely fight for this fund for over a year and overcome attempts from Governor Cuomo to sabotage the fund. Their hard-fought victory came on the heels of a 22-day hunger strike."

Major projects in the city

New York City construction projects will receive a large slice of $36 billion addition infrastructure funding in the budget.

Cuomo's controversial proposed "Empire Station Complex" in Midtown — a major revamp of the area surrounding Penn Station — received $1.3 billion in the budget. But lawmakers appeared to restrict its use for transportation, rather than the soaring skyscrapers many city leaders feared would be pushed through without local input.

The governor on Wednesday largely confined his talk about the project to its benefits for transportation in Manhattan and other West Side developments, including a 50 percent expansion of the Javits Center.

"We build a new Empire Station Complex with more rail lines, more residential and commercial development," he said. "It connects to a new Javits Center. It connects to a new Pier 76. It is an entire comprehensive west side redevelopment that we think will make a major difference in New York City, which sorely needs it."

Other projects in the city that Cuomo highlighted were the extension of the Second Avenue subway all the way to 125th Street in Harlem, direct truck access to Hunts Point to eliminate vehicle pollution in the south Bronx and road work in Queens.