By Mark Scott
Albany, NY – Governor Pataki released a proposed budget Tuesday that would increase state spending by more than $4 billion over the current year's spending plan. Pataki's proposal for the 2006-2007 fiscal year totals $110.7 billion.
It would reduce property, income and business taxes even while pumping up spending on education and energy programs. Pataki's said the spending plan -- his last as governor -- calls for several tax incentives to lure and enhance business in New York State.
All told, the governor is proposing to reduce property, income and business taxes by $3.2 billion.
The governor's proposed budget also includes a $7 million allocation for an addition to the University at Buffalo's Center of Excellence in Bioinformatics and Life Sciences. The Hunter James Kelly center will be dedicated to studying rare childhood diseases, such as Krabbe's disease. Hunter died of Krabbe's last year. The foundation created by his parents, Jim and Jill Kelly, is donating $1 million to the center.
The state budget is due to be in place by April 1st, a deadline the state met last year after passing late budgets for 20 consecutive years.
Highlights of the 2006-2007 state budget: -- A "pro-family tax cut" that eliminates the so-called marriage penalty in state income tax. Pataki also proposed greater tax relief from local school taxes for seniors and other home owners under the state STAR program including rebate checks sent directly to taxpayers. He also seeks to eliminate the estate tax.
-- A $500 heating fuel tax credit to many senior citizens.
--$1.1 billion in business tax cuts over the next few years. Pataki would cut the business income tax rate by ten percent and eliminate some small business taxes.
-- $130 million to pay for civil confinement of sex offenders.
-- A $1 increase in New York's cigarette tax, pushing the statewide tax on a pack of cigarettes to $2.50. A typical pack of cigarettes would cost about $6 statewide.
-- More than $1.1 billion in Medicaid savings for New York City and counties statewide.
-- More state aid for poor, urban schools, including money for tutoring, expansion of charter schools, math and science summer programs at community colleges for middle school students, and free tuition to the State University of New York and the City University of New York for math and science majors who agree to teach in New York.
-- Ten percent discount in the EZ Pass toll program for drivers of hybrid and other cars that get at least 45 miles per gallon and meet air quality standards.
-- A $500 tax credit for replacement or renovation of old home heating systems.
-- Two sales tax-free weeks for the purchase of appliances and air conditioners that carry the Energy Star tag showing they are energy efficient.