ALBANY (AP) -- New York state Senate Republicans' attempts to block a tax hike on top earners and to continue property tax rebates for homeowners both failed Friday before lawmakers passed the $131.8 billion state budget.
In debates on the nine bills to enact the budget for the fiscal year that started Wednesday, Republicans complained that they and their constituents were left out because it was negotiated mainly by three downstate Democrats.
"There's no attention to western and upstate New York in this budget," said Sen. George Winner, an Elmira Republican.
Sen. Liz Krueger, a Manhattan Democrat, said the New York City area generates far more state revenue than it receives, and this budget constitutes "a further transfer" from downstate to upstate than the usual $13 billion. She said an income tax hike was needed to prevent cuts in fundamental services. It is expected to generate $4 billion a year for three years before it expires.
"What we were doing was actually protecting education funds, health care funds and other priorities," Krueger said.
The tax change will require wealthier residents, beginning with single filers earning $200,000 a year, to pay a higher tax rate of 7.85 percent. Rates will increase to 8.97 percent on annual incomes above $500,000. The current top rate is 6.85 percent on those earning more than $40,000.
Senate Republican leader Dean Skelos predicted the tax increase, "in the face of the worst economic crisis since the Great Depression," will lead to more job losses, higher unemployment and a deeper recession.
Democratic Majority Leader Malcolm Smith said it will affect only 4 percent of New Yorkers, noting that group will include some Republican lawmakers.
Sen. Kenneth LaValle, a Long Island Republican, said residents of Nassau and Suffolk counties pay the highest property taxes, and they'll feel the loss of the STAR property tax rebates of $500 to $1,000. They will also pay 16 percent of the higher income taxes, he said.
"Today we are taxing the rich and not the poor," said Sen. Ruben Diaz, a Bronx Democrat. "Today we are not building the budget on the backs of the poor."
State Sen. Michael Ranzenhofer said Albany politicians "still do not understand that Western New Yorkers need property tax relief now. In these tough economic times, Western New Yorkers, especially middle class families and seniors, need the STAR rebate check to pay skyrocketing property taxes just to make ends meet.''
As a result, families in his 61st District stand to lose an average of $369 in tax relief in Erie County and $525 in Genesee County this year, the senator said in a news release Friday.
The budget was negotiated by Gov. David Paterson, Assembly Speaker Sheldon Silver and Smith, in consultation with other Democratic lawmakers. It uses federal stimulus money, tax hikes and some program cuts to close an estimated $17.7 billion deficit.
The Senate passed the budget bills along party lines, 32-30, on Thursday and Friday. The Assembly passed them Tuesday.
Along with the tax and spending measures, lawmakers passed legislation to replace some mandatory prison sentences with judges' discretion to order probation, addiction treatment or boot camp. They also authorized nickel deposits on water bottles starting in June. Carbonated beverages, beer and wine coolers already have mandatory deposits.
Paterson is expected to approve all the bills.