Hochul’s budget proposal to push for MTA payroll tax, NYC workforce overhauls, public benefits recoup

ALBANY — Gov. Hochul will unveil a host of policy and spending proposals on Wednesday as she presents her spending plan for the state.

The governor will present an overview of her annual budget outline at noon highlighting her already announced plans to address public safety, ramping up the building of affordable housing and mental health as the state readies itself for potential economic uncertainty.

In her State of the State address, Hochul laid out plans once again amend the state’s controversial bail laws and boost care for New Yorkers struggling with mental health issues.

The governor is expected to also provide more details about her plan to add 800,000 units of affordable housing.

Hochul’s budget proposal is just the first step in a two-month-long process that will see both houses in the Democrat-led Legislature present their own spending plans before the state’s fiscal deadline of April 1. Last year, lawmakers and Hochul agreed to a $220 billion spending plan bolstered by federal COVID funds.

Here’s a look at some policy and economic proposals already outlined ahead of Hochul’s budget presentation.

NYC Workforce

Hochul will put forth a plan allowing New York City to require contractors to hire “economically disadvantaged” job candidates.

The measure comes after Mayor Adams called on Albany lawmakers to grant the city the power to impose hiring requirements on city contracts and subcontractors. The measure would create an Office of Community and Workforce Development, which would be able to require certain contractors to meet goals for hiring workers that fit a specific economic criteria, according to the governor’s office.

Payroll tax and Casino Revenue for MTA

The governor is hoping to convince lawmakers to raise payroll taxes on downstate businesses and use revenue from new downstate casinos to cover operating costs for the Metropolitan Transportation Authority.

Hochul’s plan would see companies in the MTA’s service area, including the five boroughs, Long Island and parts of the Hudson Valley, tax 0.5% of employee wages, an increase over the current 0.34% levy. The plan could generate $800 million for the beleaguered MTA, which has seen ridership decline during the COVID pandemic.

Combined with casino revenue, Hochul is hoping to see an additional $1.3 billion a year for the MTA. That would include roughly $500 million more coming from the city.

EBT/Public Assistance Recoup

A section of Hochul’s budget proposal would let the state reimburse public assistance recipients whose benefits are stolen by card skimming, cloning, or other fraudulent acts, the Daily News first reported.

The proposal comes after advocates and the Daily News highlighted the fact that there is currently no recourse for New Yorkers in need whose benefits are stolen by tech-savvy thieves.

Thousands of low-income New Yorkers were victims of benefit theft by card-skimming schemes last year, according to data from the Empire Justice Center and the Legal Aid Society obtained from the Office of Temporary and Disability Assistance.

Belmont Park Borrowing

Hochul’s budget proposal also includes support for a major overhaul of Belmont Park.

The governor’s outline includes a plan to allow the New York Racing Association access to $455 million in state-backed bonds to complete the project.

NYRA, which operates racetracks at Belmont, Aqueduct, and Saratoga, is looking to use the funds to replace the 430-acre facility’s grandstand and clubhouse, which have not been renovated since 1968. Belmont Park is located in Elmont, along the border between Queens and Nassau County.

Charter School Cap

Charter school proponents will be happy with Hochul’s plan to eliminate regional charter school caps.

The governor’s plan would keep the statewide cap of 460 charter schools in place but she is hoping to eliminate regional caps and make 85 more slots available for new charter schools anywhere in the state.

While there is a cap of 275 charters in the city, part of the governor’s plan would also free up roughly 11 slots in the five boroughs that are currently held by schools have closed in recent years.