One-house budgets: Where Hochul and lawmakers disagree this year

Including on income tax rates, health care funding and school aid.

Good afternoon — It’s Tuesday and Mario Day.

In today’s CapCon:

• Democrats in the state Senate and Assembly have released their respective one-house rebuttal plans to Hochul’s budget proposal.

• Lawmakers in both chambers endorsed some of what Hochul has pitched, either as-is or with changes, but also rejected several other measures.

• Here are the major differences between Hochul’s budget proposals and the plans laid out by lawmakers in their respective one-house plans.

Names in today’s CapCon: Kathy Hochul

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(Lori Van Buren/Times Union)

💰 One-house budgets are out. Here’s what’s in them and how they differ from Hochul’s budget

Democrats in both chambers of the state Legislature released their one-house budget bills overnight.

Those are their rebuttals to Gov. Kathy Hochul’s executive budget released last month. They show which of Hochul’s proposals they oppose by intentionally omitting them from their one-house budgets.

There are several of Hochul’s proposals that lawmakers declined to include in their one-house budgets this year. But there are also plenty that they included, either as written or with proposed changes.

Democrats in both chambers also included items that weren’t in Hochul’s budget, like checks to help offset high energy bills, a new fund for people who’ve lost Affordable Care Act premium tax credits, and expanded powers for the state Office of Medicaid Inspector General.

Lawmakers are also proposing a series of income and corporate tax rate hikes, as they have in recent years. We’ll start there today.

New York City Mayor Zohran Mamdani (Lori Van Buren/Times Union)

Revenue (S9009B/A10009B)

Income and corporate tax increase proposals: Democrats in both the state Senate and Assembly are proposing increases in income and corporate tax rates statewide and in New York City.

Hochul is not proposing any income or corporate tax increases. Lawmakers are hoping she’ll change her mind due to New York City’s projected $5.4 billion budget gap.

The current top state income tax rate is 10.9%. Both chambers are seeking to increase that.

• Assembly (Part AA): The Assembly wants to raise it to 11.75% for people who earn between $25 million and $100 million. For those earning more than $100 million, the Assembly’s proposal would set their income tax rate at 12%.

• Senate (Part FF): The Senate is proposing to raise that income tax rate for people earning between $5 million and $25 million from 10.3% to 10.8%. Their proposal would raise income tax rates for people who earn more than $25 million to 11.4%.

The current corporate tax rate is 6.5% for businesses with incomes below $5 million and 7.25% for those with incomes above that amount.

• Assembly (Part E): The Assembly wants to keep the 7.25% rate for businesses with incomes between $5 million and $10 million and impose a new 9.25% rate on those earning more.

• Senate (Part E): The Senate is seeking to raise the corporate tax rate for all businesses earning more than $5 million to 9%.

Democrats in both chambers are also proposing to allow New York City to raise the local income and corporate tax rates.