NY Senate Budget Plan Includes State Gas Tax Break

Gas prices are advertised at over $6 a gallon, Monday, March 7, 2022, in Los Angeles. (AP Photo/Marcio Jose Sanchez)
SAUGERTIES, N.Y. — Mid-Hudson Valley state legislature Democrats hailed budget proposals — which include a break from the state’s gas tax in the state senate — as historic, while GOP leaders slammed the entire measure as a fairy tale spending package.
Both the Assembly and Senate, controlled by Democrats, favored the budget proposals which will now wind their way through the legislature toward an expected final budget vote before the April 1 deadline.
Democrats such as Senator Michelle Hinchey, D-Saugerties, lauded the proposal as a much-needed funding investment.
“The Senate’s historic one-house budget proposal shows what it looks like to have a strong upstate voice in Albany, fighting to get equity for upstate needs and to bring transformational levels of investment to communities that have been left behind,” Hinchey said. “In this resolution, we’ve proposed the largest-ever investment to address the upstate housing crisis and made good on our promise to continue the expansion of universal full-day pre-k to upstate communities. We’ve accelerated the middle-class tax cuts and given New Yorkers reprieve at the pump with the creation of a gas tax holiday.”
If the gas tax is enacted, Hinchey said, it would, “Suspend New York’s gas sales tax from May 1, 2022, to December 31, 2022 and allow local governments to do the same, keeping over $600 million in the pockets of New Yorkers through the end of the year.”
Hinchey, who pushed for a number of the provisions, added that other investments are being made.
“We’re delivering record investments for local roads and broadband expansion, ensuring we have the infrastructure upstate New Yorkers and our small businesses need to thrive,” Hinchey added. “Our Senate one-house sends a clear message that no matter where you live across New York State, we want you to see real, tangible impacts that will better your life for the future.”
But Republicans say the Democrats’ spending spree is out-of-control.
“There are positives in this budget that will pay immediate dividends across the state that I can support – repeal of the fiber optic right of way tax that is stifling broadband expansion, additional funding. . .to help fund local road improvements, and the accelerated phase in of the Middle Class Tax Cut,” said Senator Peter Oberacker, R-Schenevus, who represents the 51st Senate District. “However, the overall amount of spending is unsustainable and tax hikes are inevitable. The budget blows through reserve funds at an unsustainable rate and will leave our state in a highly precarious financial position going forward.”
Oberacker described the proposal as a “fairy tale plan.”
Senator Mike Martucci, R-North Hampton, who represents the 39th Senate District, felt similarly.
“The overall level of spending imagined in this document is crazy, and the last thing this State needs is another tax-and-spend budget,” Martucci said.
Jamie Cheney, a Democrat who is challenging Senator Sue Serino, R-Hyde Park, for the newly-created 43rd Senate District seat, blasted the senator’s vote but framed it as a vote on the gas tax.
“A gas tax holiday is a no-brainer for New Yorkers to lower prices at the pump so they can get to work, school, the grocery store, doctor’s appointments,” Cheney said in a statement “Senator Serino’s vote. . .shows that she’s either not paying attention, or too concerned about pleasing Albany bosses to do what’s right: give working families a break when they need it the most.”
“Today we saw the real Sue Serino,” said Cheney. “She says what people want to hear, but then votes against them in Albany.”
Serino did not issue a response to Cheney’s accusations on Tuesday, but Senate Republican Spokesman Michael Kracker did.
“Senator Serino has been a consistent supporter of a full suspension of the state’s gas tax to provide sorely needed relief to New Yorkers at the pump,” he said. “Albany Democrats put forward a political, non-binding budget resolution that only called for a partial repeal of the gas tax while they continue to push legislation that would raise prices at the pump another 55 cents per gallon. This is the pro-gas tax conference that Jamie Cheney is trying desperately to join.’
“While Jamie Cheney and the Albany politicians play partisan games, Senator Serino will continue to be an independent voice committed to fighting for her constituents,” Kracker said.
On Monday, Serino was critical of the entire package.
“The Supermajority approved a one-house budget resolution that includes over $9 billion in taxpayer dollars over what the Governor proposed,” Sernio said. “That is a truly staggering number.”
“While this proposal is just that — a proposal — it is nothing more than an unsustainable political wish list,” Serino added.
“Despite the bloated numbers, this proposal still failed to include any significant funding to prevent the spread of Lyme and tick-borne diseases, failed to fully suspend the state gas tax — proposing to do so only partially — and failed to provide adequate funding to bolster programs or fix the broken Emergency Rental Assistance Program (ERAP) that has left too many New York renters and small landlords in indefinite limbo,” she said.