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ew York Governor Kathy Hochul has unveiled a $252 billion budget for the second Trump administration, which includes an extension of the state's millionaire's tax and new housing funds. The proposed budget extends tax rates for high earners by five years, keeping them in place until 2032. This move aims to offset various proposals, including cuts for joint filers making less than $323,200, expansion of the child tax credit program, and an extension of the pass-through entity tax program.

    The state's highest earners will continue to face a top tax rate of 10.9 percent, which applies to those earning more than $25 million annually. This decision has been met with concerns that it may drive high-net worth individuals out of the state, impacting the luxury residential market and resulting in lost tax revenue.

    Hochul's budget also includes $1 billion in cuts for joint filers making less than $323,200, expansion of the child tax credit program, and an extension of the pass-through entity tax program. The governor has taken a "full repeal or no deal" stance on federal talks over the state and local tax (SALT) cap, which is expected to be changed as Congress negotiates various elements of the 2017 tax law.

    The Real Estate Board of New York president Jim Whelan questioned the governor's extension of the tax rates for high earners, stating that it may not be good policy or optics at a time when local leaders are calling on Washington for relief from state and local taxes. The Citizens Budget Commission criticized the budget as "short-sighted," saying it balloons spending by 10 percent over the next year.

    Hochul's budget also includes proposals to extend the state's $700 million film production tax credit for two more years, through 2036, and make another credit available to independent film production companies. Additionally, the governor wants to allocate $50 million to a revolving loan fund for mixed-income rental housing outside of New York City.

    The executive budget is a starting point for negotiations with the state legislature, which will play out in the months ahead.