Gov. Andrew M. Cuomo and the New York state Legislature announced last week that the state has finalized a $212 billion budget for FY 2022—almost two weeks after the deadline. The budget invests in almost every sector of the state. Notable provisions include $2.4 billion in relief for renters and homeowners, and $1 billion for small-business recovery. Additionally, there is significant investment in education, child care and infrastructure.
The $212-billion budget figure represents an estimated 10% increase from last year’s budget. Federal relief money and tax increases to wealthy residents in New York and businesses fund the increase in this year’s budget. As a result, two new, individual tax brackets will be created–one for residents who make between $5 million and $25 million, and the other for residents who make more than $25 million. Additionally, there will be an increase in the Corporate Franchise Tax Rate for businesses that make more than $5 million in income.
These tax increases will impact many insurance carriers. These increases could impact policyholders adversely, as carriers could attempt to pass the increase on to insureds.
Many insurance-related measures were left out of the final budget—including provisions that would have allowed the New York State Insurance Fund to cover policyholders’ out-of-state operations as long as policyholders’ main operations reside in New York state.
Bradford J. Lachut, Esq.
Bradford J. Lachut, Esq., joined PIA as government affairs counsel for the Government & Industry Affairs Department in 2012 and then, after a four-month leave, he returned to the association in 2018 as director of government & industry affairs responsible for all legal, government relations and insurance industry liaison programs for the five state associations. Prior to PIA, Brad worked as an attorney for Steven J. Baum PC, in Amherst, and as an associate attorney for the law office of James Morris in Buffalo. He also spent time serving as senior manager of government affairs as the Buffalo Niagara Partnership, a chamber of commerce serving the Buffalo, N.Y., region, his hometown. He received his juris doctorate from Buffalo Law School and his Bachelor of Science degree in Government and Politics from Utica College, Utica, N.Y. Brad is an active Mason and Shriner.