Legislative leaders reached an agreement late Saturday on a 2009-10 state budget that uses federal stimulus money to restore about $500 million in cuts Gov. David Paterson proposed in his December budget.

In the $131.8 billion budget, lawmakers reinstated funding for schools, municipalities, roads and bridges, workforce training and agriculture programs. But they also imposed higher taxes on wealthy residents, hospitals and health maintenance organizations.

The result is a mixed bag for Central New York.

If the Legislature adopts the leaders’ budget in a vote expected Wednesday, residents here and across the state will most certainly feel the sting of cuts, as lawmakers had to close a $16 billion budget gap – the largest in state history. But amid the doom and gloom, some good news emerged.

Consider some of the budget proposals:

New tax structure: Two new income tax rates would be added to the state’s tax code, which currently taxes poor New Yorkers at the same rate of 6.85 percent as rich New Yorkers.

Families making more than $300,000 but less than $500,000 would pay an income tax rate of 7.85 percent through 2011, while those making more than $500,000 would pay a rate of 8.97 percent. The change would generate $4 billion a year in state revenue.

STAR rebates: Middle-class New Yorkers no longer would receive STAR rebate checks in the mail – a move that would save the state $1.5 billion next year. But residents would continue to receive reductions on school property taxes under the STAR program.

In Syracuse, rebates ranged from $145 to $289 in 2007 and 2008.

Beer and wine: Leaders agreed to keep wine out of grocery stores, but they supported an increased excise tax on beer – albeit a smaller one than originally proposed.

Source: Syracuse.com Continue Reading This Article Here