Divisions are forming in the upcoming debate over tax cuts that’s likely to dominate the new legislative session.
Business groups are largely supportive of the findings of a tax commission appointed by Gov. Andrew Cuomo. The commission recommends cuts to the corporate tax, faster phase out of an energy tax and easing of the estate tax. They also propose a reduction in property taxes by encouraging local governments and schools to cut spending and consolidate.
Now that the elections are over, state budget deadlines are rapidly approaching. Comptroller Thomas DiNapoli has released a largely positive budget outlook for the new year, though he warns of some uncertainties.
Under reforms adopted a few years ago, state officials including the comptroller, are required to start the budget process, which ends in late March, even earlier.
DiNapoli is out with his report, and he says the state budget is largely in balance.
Gov. Andrew Cuomo says he thinks the state can afford a tax cut next year, despite a projected $1 billion budget gap.
Cuomo says he’s been holding down spending during his first three years in office, with an average growth rate of two percent each year, compared to an annual 10 percent increase before he was governor. He says he expects enough money can be freed up to finance some kind of tax reductions during 2014.