What Does the New York State Budget Mean For You?

NEW YORK (CBS 2) -- One of the latest budgets in New York State history was finally approved Tuesday night in Albany.

Even as lawmakers settled on a state spending plan, the budget, along with more taxes and fees, could drastically change the way the average New Yorker lives.

CBS 2's Marcia Kramer reports that while Albany may have finally gotten its act together, it is coming at a hefty price to taxpayers. Everything from the clothes people wear to taking mass transit to power usages in homes could all result in more money coming out of people's pockets.

"It's like being hit and hit again and again and again," economist Ken Goldstein told Kramer.

More taxes are on the way for hotels rooms are booked over the internet and state sales taxes will be levied on clothing purchases under $110.

Frustrated New Yorkers say the new taxes will take their toll.

"It costs about $50,000 just to be poor in this city," Harlem resident George Afutu said.

"I think about how am I going to retire if I keep getting squeezed," said Kevin Hessian of Wheatley Heights.

Diana Altamirano said she hasn't gotten a raise in two years and that times have gotten tough.

"I have to cut back ... on everything," Altamirano said.

Here are some of the ways the budget will affect New Yorkers:

-The new sales tax on clothing will add 4 percent to every purchase under $110 and another $44 for every $1,000 spent.

-Con-Edison got a three-year, 12-percent hike which translates to a $115-per-year average increase for customers.

-Water rates also went up 12.9 percent or an average increase of about $96 a year.

-The MTA increase equals 7.5 percent for buses, subway, trains and tolls which could mean a bump of up to $180-per-year on MetroCards.