Aside from school aid bumps, other items in the New York State budget adopted Thursday include a “middle class” tax rebate for families with kids, a creation of a bar-type exam for prospective teachers and financial incentives for top-performing teaching.
The budget will also increase the state minimum wage, and provide more highway improvement funds for Shelter Island, Dering Harbor and towns and villages throughout the state.
The budget deal extends from last year a higher tax on top earners, which reportedly raises about $1.9 million annually.
The 2013-14 budget is the third consecutive state budget that’s been adopted before the April 1 deadline by which it’s supposed to be adopted. That hasn’t always been the case, as the state routinely missed the budget deadline for many years prior to that.
This is the first time since 1984 the state made the deadline three years in a row.
Overall, the $135 billion budget increases total state spending by under one percent, according to state documents.
“This budget agreement puts New York on track to have the third consecutive on-time, balanced, budget that holds increases in spending under 2 percent,” Governor Andrew Cuomo said in a press release.
The adopted budget “includes direct tax relief for middle class families in the form of a $350 Family Tax Relief credit,” according to officials.
Over the next three years, each New York family with at least one dependent child and a household income between $40,000 and $300,000, will receive a “Family Tax Relief” credit in the amount of $350. The statewide amount of these payments will be $1.23 billion over three years, beginning in 2014.
The budget extends the “middle class” personal income tax rate reductions enacted in 2011, which were due to expire in 2014. Those reductions will provide 4.4 million taxpayers with $707 million in tax relief per year, according to state officials
The new budget also calls for creation of “Bar Exam for Teachers,” officials said.
“To ensure the best and brightest are teaching our children, the State Education Department will increase the standards for teacher certification to require passage of a “bar exam,” in addition to longer, more intensive and high-quality student-teaching experience in a school setting,” Mr. Cuomo said.
The state also plans to reward “high performing teachers” under the new budget.
“To improve results and incentive high-performance, the budget implements a program that will offer $15,000 in annual stipends for four years to the most effective teachers beginning with math and science teachers,” the governor said.
A total of $11 million in incentives will be given statewide. Specifics were not available on how teacher performance will be judged.
Local municipalities on the North Fork will see an increase in Consolidated Highway Improvement Program (CHIPS) funding under the new budget, which increased that fund by $75 million statewide.
“This nearly $7 million in funding for towns and villages in the First Senatorial District will allow us to put New York back to work by repairing roads and bridges,” said state Senator Ken LaValle (R-Port Jefferson).
This is the first time since 2008 that CHIPS funding has increased.
Locally, Shelter Island Town will get $123,321, a 28 percent increase, the Village of Dering Harbor on Shelter Island, is getting $59,891, a 27 percent increase, and Greenport Village is getting $52,902, a 24 percent increase, and
The new budget also raises the minimum wage in New York State from $7.25 per hour to $9 per hour, but over three years.
“Recognizing that New York’s minimum wage is unlivable and that 19 other states have higher minimum wages than New York, the budget raises the minimum wage from $7.25 per hour to $9.00 per hour over three years, beginning with $8.00 by the end of 2013, $8.75 by the end of 2014, and $9.00 by the end of 2015,” the governor said.
The budget also provides hiring tax credits to businesses that hire returning veterans and young people.
The credit will equal 10 percent of wages paid for hiring veterans, and 15 percent of wages if the veteran is disabled, officials said.
The budget includes a refundable tax credit for businesses that hire people under the age of 20, which officials say will save those businesses a total of $112 million over three years, statewide.