The Citizens Budget Commission is suggesting that Gov. Andrew Cuomo cut his proposed education aid increase in half and eliminate the property tax relief credit in order to plug a $2.3 billion hole in the deficit.
The commission, which is a nonpartisan fiscal advocacy group, suggested the state limit the growth in spending to no more than 2 percent. In order to accomplish that, the CBC said the governor should increase education aid by about $450 million, instead of the $956 million he is proposing by directing more education aid only to those districts that need additional resources to fund a “sound basic education,” according to a news release.
Education advocacy groups are seeking about a $2 billion increase in education aid.
In addition, the commission said the state should eliminate the property tax relief credit, which is set to expire after calendar year 2020. People get reimbursed for a certain percentage of the increase in their school taxes, depending on their income, as long as their district stayed under the cap.
Getting rid of it would save more than $1 billion, according to the commission.
The commission said the state should not rely on short-term fixes such as deferring retirement system payments or business credits or implementing broad-base taxes. Gov. Andrew Cuomo has blamed the capping at $10,000 the amount of taxes that people can deduct on their federal return, for the revenue shortfall. He said it has anecdotally he has heard it has caused rich people to move out of the state.