ALBANY -- Gov. Kathy Hochul on Monday proposed sending checks of up to $500 to New Yorkers as an "inflation rebate."
The checks would provide $300 to a taxpayer who makes up to $150,000 and files as a single person. For a joint return, $500 checks would go to families making up to $300,000.
"Because of inflation, New York has generated unprecedented revenues through the sales tax -- now, we're returning that cash back to middle-class families," Hochul said. "My agenda for the coming year will be laser-focused on putting money back in your pockets, and that starts with proposing Inflation Refund checks of up to $500 to help millions of hardworking New Yorkers. It's simple: the cost of living is still too damn high, and New Yorkers deserve a break."
The $3 billion to cover the one-time checks would come from sales tax revenue that has increased beyond projections.
Hochul said this is the first piece of her State of the State address due to be delivered next month to set her legislative agenda for 2025.
"Inflation comes from too much money chasing too few goods and services," said Ken Girardin, research director at the nonpartisan Empire Center for Public Policy think tank in Albany. "This is a proposal to make state lawmakers feel better about making inflation worse."
Citizens Budget Commission President Andrew S. Rein said more must be done to provide relief. "A one-time rebate may feel good, but what New York needs is lower taxes to be more affordable and competitive," Rein said.
In her proposal, Hochul confronts the affordability issue -- which many political observers say cost the Democratic Party key positions last fall and recent gains by the GOP in New York State. But affordability has also been a constant theme for Hochul since she took office in 2021 and has been the basis for her legacy issue of increasing housing affordability.
Her proposal is similar to the STAR property tax rebate checks begun by Republicans more than a decade ago when they controlled the State Senate. The political value of sending a check often noted elected leaders' names prominently.
The governor will release her budget proposal in late January where she will detail how she plans to fund the $3 billion cost and seek approval from Senate and Assembly leaders.
The friction lies with arguments from progressive factions within the Democratic Party regarding other unfunded needs requiring revenue, particularly in education.