Drivers traveling into the busiest sections of Manhattan will be subject to a congestion charge starting in 2021 and single-use plastic bags will be banned across New York state in less than a year, under a $175.5bn state budget agreement announced on Sunday by the governor, Andrew Cuomo, and legislative leaders.

One major issue that did not make it into the spending plan was the legalization of recreational marijuana. Cuomo and party leaders have said the issue is too complex to rush. It could be handled in the last three months of the legislative session, scheduled to end on 19 June.

Other agreements in the budget include the closure of up to three state prisons, eliminating cash bail for misdemeanor and nonviolent felony arrests, a permanent 2% cap on local property taxes and another $1bn for public education.

“I am proud to announce that together, we got it done,” Cuomo said.

Lawmakers planned to begin passing budget bills right away during a session that could spill into Monday, when the spending plan for 2019-2020 is due to be in place.

Most single-use plastic bags provided by supermarkets and other stores will be banned statewide starting 1 March 2020. Counties will have the option of charging 5 cents for paper bags, with 2 cents going to local governments and 3 cents to the state environmental protection fund.

The Manhattan tolls plan will be the first of its kind in the US. State leaders said a review board will determine the toll amount, exemptions and credits for drivers headed into the central business district. The billions the tolls are expected to raise will go toward fixing New York City’s ailing mass transit system.

The state budget includes two other revenue sources for the subways: a “mansion tax” on Manhattan homes that sell for $25m or higher and an internet sales tax.

The Metropolitan Transportation Authority will be subject to a reorganization plan and other reforms Cuomo has demanded.

Other criminal justice reforms include requiring prosecutors and defense lawyers to share all case information well in advance of trials, and speeding up the time it takes for a case to go to trial.

The budget agreement establishes a state commission that will come up with a system for the public financing of legislative and statewide offices, with up to $100m in taxpayer funds authorized annually for such a system.

Cuomo and legislative leaders also agreed to allow three hours of paid time off for New Yorkers to vote on election day and expand voting hours upstate to begin at 6am instead of noon.