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Plastic Bag Ban, Congestion Pricing, Mansion Tax: Here Are Highlights Of New $175B State Budget

Congestion pricing for motorists in Manhattan, a plastic bag ban and a new “mansion tax” are coming to New York.

The New York State Capitol in Albany.

The New York State Capitol in Albany.

Photo Credit: Wikipedia.

New York lawmakers worked late into Sunday night, March 31 before finally approving Gov. Andrew Cuomo’s $175.5 billion state spending plan early on Monday morning, April 1.

The budget calls for a ban on single-use plastic bags, will charge motorists driving below 60th Street in Manhattan a fee and ad the “mansion tax,” which is a one-time fee for some of the state’s wealthiest residents and is expected to bring in approximately $365 million.

Much of the additional revenue being generated is expected to help decrease traffic in Manhattan and to spark improvements on the aging subway and bus system in New York. The Empire State becomes the first in the country to introduce congestion pricing, which has proven effective in cities internationally.

The budget maintains spending at a 2 percent cap and continues a middle-class tax cut. It also features an increase in school aid by nearly 4 percent, up to nearly $30 billion, the most of any state in the country. Spending on Medicaid is expected to grow to nearly $20 billion.

New York Sen. David Carlucci said that the Legislature “delivered a fiscally responsible and on-time budget, which will help hardworking New Yorkers.” 

“We kept our promise to hold the line on property taxes, making the 2 percent property tax cap permanent. Now overburdened homeowners will save billions for years to come,” he said. “Our budget included: a $1 billion increase in education funding with better equity, a plan for publicly-financed political campaigns, almost $25 million to fund Early Voting and e-poll books, and restored hundreds of millions in cuts to hospitals and nursing homes. No budget is ever perfect, and we look forward to our work ahead to deliver a full phase-in of Foundation Aid and a congestion pricing plan that benefits Hudson Valley residents."

Despite a last-minute push, and Cuomo’s support, legalized marijuana was ultimately rejected by lawmakers, many of whom argued that any bill supporting legalization did not guarantee any positive returns in their communities.

According to Cuomo, New Yorkers use billions of plastic bags annually, which do not biodegrade, creating massive amounts of litter in neighborhoods and waterways and posing a threat to the health of area residents and the environment. The ban is expected to reduce greenhouse gas emissions associated with plastic bag production and disposal.

“We see plastic bags as litter every day – hanging from trees along highways, blowing down the street, and in our waterways where they do incredible harm to whales, sea turtles, sea birds and other wildlife,” officials from the Wildlife Conservation Society stated. “Plastic pollution is ubiquitous. With this ban, New York’s waters will be cleaner and safer for marine wildlife. We look to other states and countries to follow New York’s lead. WCS’s Zoos and Aquarium have already joined other zoos to ban many single-use plastics at our facilities.”

DEC Commissioner Basil Seggos added, "promoting recycling, reducing waste, and helping end the blight of plastic bags littering our environment are top priorities. Thanks to Gov. Cuomo's leadership, proposals to ban plastic bags and expand the bottle bill will bolster New York's ongoing efforts to improve recycling markets and reduce contamination in the waste stream. These actions will also help municipalities and retailers respond to global changes in the recycling industry. We will continue to explore additional ways to protect our environment."

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