Assemblymember Didi Barrett (D-Hudson) has announced the 2014-15 Assembly budget proposal provides much needed tax relief and investments in education. The proposal includes $1.1 billion in additional education aid and $2.3 billion in tax relief.

The Assembly budget includes many provisions that Assemblymember Barrett fought for. She made phasing-out the Gap Elimination Adjustment a priority because of the unfair burden it puts on school districts. Recognizing property taxes are still too high she pushed for the Assembly proposal which includes a circuit breaker. Additionally, Assemblymember Barrett noted that while Columbia County was included in the upstate manufacturer’s tax credit, Dutchess County was not and Barrett fought for Dutchess to now be included in the program.

Education Investments

The Assembly proposal provides schools with an additional $1 billion annually over each of the next four years. School aid would grow to $22.2 billion for SFY 2014-15, an increase of nearly $1.1 billion over last year’s budget and $402 million more than what Governor Cuomo proposed.

Included in the increase is $367 million for Gap Elimination Adjustment restoration, $43.3 million over the Governor’s proposal. The Assembly’s proposal would also increase Foundation Aid to schools by $335 million, for a total of 15.5 billion. Foundation Aid targets high needs and rural districts and provides much-needed relief to schools that face costs largely beyond their control.

“The Assembly proposal includes the largest increase in education aid in over six years, said Assemblymember Barrett. “Ever since the financial crisis, we have attempted to balance the budget on the backs of our children, which is unacceptable. Our rural districts have been especially burdened by these cuts. We owe it to our children to do all we can to provide the best educational opportunities available.”

Tax relief for families

The Assembly budget provides $1.1 billion in property tax relief for homeowners. Families making under $200,000 per year would base their property tax bill on their ability to pay and not on an arbitrary property value. Additionally, the proposal eliminates the 18a utility tax surcharge on residential customers. This provision accelerates the plan enacted in last year’s budget and was a priority of Assemblymember Barrett.

Tax benefits for businesses

In the Assembly proposal both Columbia and Dutchess counties are included in the upstate manufacturer’s tax credit, which cuts manufacturers’ income tax to zero. Furthermore, Columbia and Dutchess counties are included in the upstate film tax credit program that provides tax credits to producers who film in the counties. The Assembly proposal also reforms the estate tax, increasing the threshold from $1 million to $3 million that can be excluded, something especially important for our farming families.

“The Assembly budget was framed with working families in mind; they are the ones who need relief and this budget delivers,” said Assemblymember Barrett. “We managed to lower taxes for families and provide tax cuts for businesses in a responsible manner that allows the state to keep moving forward.”