New York State Budget: What It Means For NYC

NEW YORK — In the wee hours of Monday morning, state lawmakers passed what Gov. Andrew Cuomo called "the broadest, most sweeping state budget that we have done." While they will be felt throughout the state, many policies tucked into the $175.5 billion spending plan for the 2020 fiscal year will be particularly consequential for New York City.

Just about every driver will have to pay to get into Manhattan's core. Rich home-buyers will soon face heftier taxes on their mansions. Plastic bags will be banned. And Mayor Bill de Blasio will maintain his grip on the city's public schools.

Cuomo, a third-term Democrat, patted himself and the Legislature on the back for tackling problems that had gone unsolved for years.

"We are not here to do the easy issues — we are here to do the hard ones, the ones that gave you unease in the pit of your stomach, because those are the ones that need to be achieved," the governor said in a statement Monday.

But the news isn't all good. The city will have to grapple with millions of dollars in spending cuts as it faces its own June budget deadline, de Blasio says. And some other weighty issues — such as legalizing marijuana — have yet to be addressed.

Here's a look at what the massive state budget means for the five boroughs.

Entering Manhattan To Get More Expensive

More than a decade after an unsuccessul first try, the Legislature approved a congestion-pricing scheme to toll drivers entering Manhattan below 60th Street. Cuomo, de Blasio and transit advocates aggressively pushed for the policy as a way to fund the MTA and assuage the city's horrific traffic.

The tolls are expected to help raise $15 billion for MTA capital projects, such as much-needed subway upgrades. While a Cuomo-appointed panel recommended charging $11.52 to enter the borough, it's uncertain how much the toll will actually cost.

The plan essentially leaves that task to a new Traffic Mobility Review Board, which MTA Bridges and Tunnels will establish to make recommendations about tolls, credits and exemptions, according to the governor's office. When the price is set, drivers won't be charged before Dec. 31, 2020 and will only have to pay once per day if they're in passenger cars, Cuomo's office said.

Not Quite A Pied-A-Terre Tax

The budget also includes what Cuomo's office calls a "progressive mansion tax" as another new MTA revenue stream. Starting July 1, sales of high-end homes in the city will be hit with a new tax topping out at 4.15 percent for properties valued at $25 million or more, the governor's office says.

That's a watered-down version of the pied-a-terre tax, which would charge an extra property tax on multimillion-dollar homes that are not the owner's primary residence.

Cuomo and legislative leaders voiced support for the move last month. But they backed down and moved toward a one-time transfer tax amid concerns from the real estate industry, according to The Wall Street Journal.

No More Money Bail (In Most Cases)

The budget ends the use of cash bail for nonviolent offenders in a major overhaul of the state's criminal justice system. That means people charged with most misdemeanors or nonviolent felonies won't be locked in jail while they wait for a trial simply because they can't pay their way out, state officials say.

The case of Kalief Browder — a Bronx teenager who died by suicide after awaiting trial on Rikers Island for three years — highlighted the injustices of the money bail system. New Jersey, Alaska and California have also reportedly moved away from cash bail in recent years.

But it won't disappear entirely in the Empire State. Judges can still set money bail in more serious cases, though they must weigh the defendant's financial resources and other forms of bail such as a bond, state lawmakers say.

Mayoral Control

In a victory for Mayor de Blasio, the budget extends mayoral control of the city's largest-in-the-nation school system for three years through June 2022, lawmakers say.

De Blasio, a Democrat, has argued that the system of school governance used since 2002 has led to higher graduation rates and big new programs such as universal pre-kindergarten. He has taken to calling the system "mayoral accountability" to emphasize that he's responsible for what goes right or wrong.

"The buck stops with me, and I vow to continue fighting on behalf of our children and to continue working with all of our parents whose voices help improve our school system every day," de Blasio said in a statement Monday.

But there are strings attached. The budget deal provides for increased parental involvement by requiring that at least one more parent be appointed to the city's Panel for Educational Policy, according to the state Assembly.

Plastic Bags Trashed

Say goodbye to your little bodega bag — the budget makes New York the second state in the nation to ban most single-use plastic bags.

The legislation also lets counties and cities add a five-cent fee for paper bags, with 40 percent of the money raised going toward programs to provide reusable bags for low- and fixed-income people.

Lawmakers say plastic bags are a scourge on the environment. But they won't completely disappear, as the ban exempts bags used to carry meat, newspapers, garments, trash and prescription drugs, as well as those provided by restaurants.

Bad News: Spending Cuts

The budget holds some bad news for the city as it cuts millions of dollars in "critical funding," de Blasio said. That includes $125 million that goes to help low-income families and $59 million in public health dollars that support newborn home visiting, clinics that treat HIV and tuberculosis, and "public health response services," the mayor said.

"This funding also is critical for helping with the fight against opioids and testing updated vaccines for diseases like Measles and Hepatitis A," de Blasio said.

Lots Left To Do

Lawmakers did not make New York the 11th state to legalize marijuana when they approved the budget, despite Cuomo's push for it in recent months. That thorny issue is likely to loom large in the roughly three months that remain in this year's legislative seession.

Reforming the state's rent regulations to strengthen tenant protections is also a priority for legislators and progressive activists. The budget doesn't address those measures, either, and the laws are up for renewal in June.

The budget did take a step toward public campaign financing for state elections, which the city currently uses for municipal races. But lawmakers left it to a new commission to sort out the specifics in a report by Dec. 1, according to Cuomo's office.