The 2007-08 Budget: A New Direction for New York

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Budget’s Reforms Mark Shift in Spending Priorities

  • Property Tax Relief. The budget contained a $1.3 billion increase in property tax relief through the STAR program. This represents a 36 percent increase over the previous year's budget. For the first time, STAR aid will be distributed based on income, with benefits targeted to middle income homeowners. See how much tax relief you could receive.Link to External Website
  • Education Reform. School aid was increased by a record $1.76 billion (10 percent) in this year’s budget. This new funding will be distributed through a foundation formula that provides education funds based on students’ needs and local education resources. Certain school districts will also be required to create a “Contract for Excellence” that ensures greater accountability in the use of public school funding. See how much your district will receive.
  • Expanding Coverage. The budget expands access to health care for 400,000 uninsured children by increasing eligibility for the Child Health Plus program. While this effort has been blocked by the Bush administration, Governor Spitzer will continue to work toward expanding coverage.
  • Health Care Reform. The budget slows out-of-control, unsustainable Medicaid growth from an average annual rate of 8 percent during the five previous years to a slight decline this year. Moreover, it shifts funding to hospitals that serve higher proportions of Medicaid patients, and invests in critical public health programs to make New York a healthier state.
  • Aid for Distressed Localities. In the next year, $50 million in aid will be distributed to help distressed upstate cities, towns, and villages recover from economic downturns. This aid is the first installment of a four year, $200 million dollar commitment.
  • Help for the Upstate Economy. A broad-based corporate and manufacturing tax cut for New York businesses was financed by closing tax loopholes, which allowed a select group of businesses to avoid paying their fair share of taxes. The budget also made significant investments that will help improve the business climate

NOTE: The information on this page is taken from the 2007-2008 Financial Plan.

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