Hochul to unveil massive $252B budget proposal but new taxes, fees for MTA remain mystery

Gov.Kathy Hochul will unveil her most costly budget proposal ever Tuesday, with the $252 billion plan set to continue jacking up spending to fund new handouts.Hochul’s executive proposal is $19 billion, or 8.3%, larger than last year’s proposal and $36 billion, or 16% higher, than her first plan in 2022.

The 2024-25 state budget is expected to cost $240 billion as of the end of the third quarter of last year.New handouts and tax cuts paired with continued boosts in school aid and Medicaid are driving the ballooning budget.“The big two would be Medicaid and school aid, as ever,” said Blake Washington, Hochul’s budget director.“Across the programs we have modest increases in a lot of other state agencies,” Washington told The Post.“Higher education has a good increase this year.”As expected, Hochul did not include a proposal to fill the $33 billion revenue gap in the MTA’s proposed $68 billion five-year capital plan.

While Washington and legislative leaders have admitted those talks will almost certainly involve new taxes or fees, Hochul’s budget does not include any proposals to fill the gap.While the state’s budget must be balanced before it’s enacted, governors have regularly presided over structural deficits pushed off to future fiscal years.Hochul is carrying a $27.3 billion out-year gap through the three upcoming fiscal years — up from the combined $14.3 billion combined out-year deficit she had coming into this fiscal cycle.Hochul’s widely- touted “affordability” measures such as a middle class tax cut and child tax credit will be phased in over two years, according to the proposal.Families with kids under four would receive a $1,000 credit per child for 2025 and a $500 credit for kids ages 4-16 in 2026.

The expanded credits are expected to cost $800 million over two fiscal years.Hochul’s middle class tax cut would go into effect for single filers making under $215,400 and married filers making under $323,200.The tax rate...