ALBANY, NY | February 1, 2023 — Fiscal Policy Institute Executive Director Nathan Gusdorf today issued the following statement:
“While Governor Hochul’s budget recognizes the importance of making New York affordable and livable for working families, the budget as a whole does not propose the depth of public investment needed to bring down rents for tenants, achieve universal childcare, or raise wages to cover the cost of living. At the same time, the Governor proposes higher tuition for CUNY and SUNY students, and effectively raises fares for straphangers by failing to close the MTA budget hole.
“New York needs recurring, sustainable revenue — not temporary tax extensions that create fiscal cliffs. The Governor only proposes to extend the current corporate tax rate on a temporary basis, while increasing corporate tax breaks that will reduce future tax receipts. At a time when corporations are making record profits, while continuing to benefit from Donald Trump’s 2017 cut to the federal corporate tax rate, sound fiscal policy requires that large corporations contribute a greater share of state revenues.
“For the past decade, the state pursued a policy of constrained spending and tax cuts for the wealthy while neglecting the needs of working and middle class families. New York now faces an affordability crisis that is forcing working families to move out of state. To stem New York’s population loss, the State should reject the disproven myth of tax flight, raise new revenue, and invest in the public services that will keep New Yorkers here. Instead, Governor Hochul’s budget continues the ineffective strategy of fiscal conservatism that created this affordability crisis.
“As we head into a possible recession, it is essential to invest in the public services that stabilize the quality of life and the cost of living for working New Yorkers: childcare and public education, transit, renewable energy, and a well-paid public sector workforce. These investments require that the state raise new revenue.
“In the coming weeks, the Fiscal Policy Institute will analyze the details of the Governor’s budget proposals and provide recommendations to the legislature.”