Tag Archives: New York State budget

Governor Kathy Hochul, News & Photo Features

Highlights of NYS Governor Budget Proposals to Build Up Healthcare, Education, Infrastructure

$10 Billion Plan Will Rebuild Healthcare Workforce and Build Healthcare System of the Future  

$31 Billion Plan Will Strengthen Teacher Workforce and Invest in Schools  

Provides Tax Relief for Small Businesses and the Middle Class  

Record Five-Year $32.8 Billion DOT Capital Plan Will Leverage Federal Funding to Support Major Infrastructure Projects Throughout the State 

$900 Million in Childcare Stabilization Grants Will Cover Operational Costs for 15,000 Childcare Providers Statewide  

$1 Billion to Fund Innovative Small Businesses and Tax Credit for COVID-Related Expenses  

Invests $1.5 Billion in SUNY and CUNY Over Next Five Years and Expands TAP Eligibility  

 Includes $4 Billion for Clean Water, Clean Air, and Green Jobs Environmental Bond Act and $500 Million for Offshore Wind  

Launches a New Five-Year, $25 Billion Comprehensive Housing Plan  

$224 Million to Fund Law Enforcement and Community-Based Gun Violence Initiatives  

FY 2023 Budget Book Available Here

NYS Governor Kathy Hochul, in Nassau County, to sign laws enhancing gun violence prevention. The Governor’s Executive Budget includes $224 million to fund initiatives that will strengthen the gun violence prevention efforts of law enforcement and community-based organizations. “Through these actions, we will work to restore New Yorkers’ sense of safety and community.” © Karen Rubin/news-photos-features.com

Here is a summary of New York State Governor Kathy Hochul’s executive budget proposal for FY 2023:

Governor Kathy Hochul today, with Division of the Budget Director Robert F. Mujica Jr., outlined her Fiscal Year (FY) 2023 Executive Budget. The FY 2023 Executive Budget maintains the Governor’s commitment to passing a bold agenda that by rebuilds New York’s healthcare and teacher workforces; provides tax relief to those who need it most; speeds up economic growth and creates good-paying middle-class jobs; strengthens the state’s infrastructure and confronts climate change; secures public safety and protects communities; makes housing more affordable to ensure every New Yorker has a roof over their head; and enacts bold reforms to restore trust in State government.  

“We have the means to immediately respond to the COVID-19 pandemic as well as embrace this once-in-a-generation opportunity for the future with a historic level of funding that is both socially responsible and fiscally prudent,” Governor Hochul said. “As I said in my State of the State speech: It’s time for a better, fairer, and more inclusive version of the American Dream. I’m calling it the New York Dream. We will make that New York Dream real – and ensure that it can be realized by every single New Yorker.”

“Governor Hochul’s Executive Budget makes historic investments in critical areas while ensuring that we are equipped for future shocks,” Budget Director Robert F. Mujica Jr. said, “Never again will the State find itself unprepared for the opportunities – or challenges – ahead. After years of unprecedented hardship, this Budget makes the State, from a financial perspective, as resilient as its spirit. It is the Budget that New Yorkers deserve and expect.”  

A Balanced Budget 

Governor Hochul’s FY 2023 budget proposal reflects New York’s solid financial footing. As tax revenues rebound the budget is balanced for the entirety of the financial plan leading up to FY 2027, has no budget gaps, and holds spending growth in FY 2023 below inflation. 

Rebuilding the Health Care Workforce  

To restore our depleted healthcare workforce and build the healthcare system of tomorrow, Governor Hochul will make a more-than-$10 billion, multi-year investment in healthcare, including more than $4 billion to support wages and bonuses for healthcare workers. Key components of this multi-year investment include:     

  • $1.2 billion of state support for healthcare and mental hygiene worker retention bonuses, with up to $3,000 bonuses going to full-time workers who remain in their positions for one year, and pro-rated bonuses for those working fewer hours;   
  • $500 million for Cost-of-Living Adjustments (COLAs) to help raise wages for human services workers;   
  • $2.4 billion for healthcare capital infrastructure and improved lab capacity; and   
  • Other investments in workforce and healthcare access and delivery.   

With these investments, Governor Hochul proposes to rebuild and grow the healthcare workforce by 20 percent over the next five years with a program designed to strengthen home care, improve the career pipeline, expand access to healthcare training and education, and recruit healthcare and direct support professionals to care for people in underserved areas.    

Strengthening the Teacher Workforce  

School Aid: The FY 2023 Executive Budget provides $31.3 billion in total School Aid for SY 2023, the highest level of State aid ever. This investment represents a year-to-year increase of $2.1 billion (7.1 percent) compared to School Year (SY) 2022, including a $1.6 billion Foundation Aid increase and a $466 million increase in all other School Aid programs.   

Foundation Aid: Foundation Aid is the State’s main education operating aid formula. It is focused on allocating State funds equitably to all school districts, especially high-need districts, based on student need, community wealth, and regional cost differences. The Executive Budget provides a $1.6 billion (8.1 percent) increase in Foundation Aid, supporting the second year of the three-year phase-in of full funding of the current Foundation Aid formula and ensuring each school district receives a minimum year-to-year increase of 3 percent.  

The Executive Budget provides SUNY and CUNY with $106 million – $53 million each – to hire additional full-time faculty at both four-year colleges and community colleges. This investment will fund an estimated 880 additional full-time faculty – 340 at SUNY and 540 at CUNY, including support for CUNY’s plan to convert adjuncts to full-time faculty. 

Providing Tax Relief to Those Who Need It  

Accelerate the Implementation of the Middle-Class Tax Cut: The eight-year phase-in of personal income tax cuts for middle-class taxpayers first began in Tax Year 2018 and is currently scheduled to be completed at the start of the 2025 Tax Year. The Executive Budget:      

  • Accelerates tax relief to middle-class New Yorkers by providing the fully implemented reduced tax rates beginning in Tax Year 2023.    
  • Provides relief to 6.1 million New Yorkers.     

Create a Tax Credit for Small Businesses’ COVID-19-Related Expenses: To continue the State’s support for our small businesses, the Executive Budget includes a new capped refundable tax relief program targeting COVID-19-related expenses for small businesses. The program provides:   

  • Up to $250 million in additional relief to small businesses.   
  • Eligible COVID-19-related capital investments include, but are not limited to, costs associated with expanding space to accommodate social distancing, HVAC equipment, expenses related to outdoor space expansions, as well as machinery and equipment to facilitate contactless sales.         

Provide Small Business Tax Relief: Small businesses were hit particularly hard by the pandemic downturn. The Executive Budget provides much needed tax relief to these businesses by:     

  • Increasing the small business subtraction modification from 5 percent to 15 percent of net business income or farm income, and    
  • Expanding the benefit to include pass-through entities with less than $1.5 million NY-source gross income.    
  • This proposal will aid 195,000 small businesses through one of the most challenging business climates in modern history.    

Provide a Homeowner Tax Rebate Credit: The Executive Budget creates a new property tax relief credit, the Homeowner Tax Rebate Credit, to eligible low- and middle-income households, as well as eligible senior households:     

  • Basic STAR exemption and credit beneficiaries with incomes below $250,000 and Enhanced STAR recipients are eligible for the property tax rebate where the benefit is a percentage of the homeowners’ existing STAR benefit.    
  • This one-year program is, in general, an extension of the real Property Tax Relief Credit Program that expired after 2019, with benefits calculated as a percentage of a homeowner’s STAR benefit. Additionally, homeowners in New York City will also be eligible for this credit.   
  • Outside of New York City, the average benefit will be nearly $970, providing relief to more than 2 million property tax-paying households. The New York City average benefit will be about $425, with benefits reaching another 479,000 property tax-paying households.  
  • For homeowners with income below $75,000 the statewide average credit is estimated at nearly $1,050, benefiting an estimated 837,800 recipients.    
  • The benefit will be in the form of an advanced credit, instead of being claimed when tax returns are filed, thus getting benefits in the hands of New York homeowners more quickly. Credits will be an advance on Tax Year 2022 income tax returns, to be directly sent to eligible homeowners beginning in Fall 2022.   

Capital Plan and Infrastructure  

The new five-year, $32.8 billion DOT capital plan will leverage Federal funding commitments made in the Infrastructure Investment and Jobs Act to support final phases of major infrastructure projects, including Hunts Point Interstate Access Improvement and the replacement of I-81 in Syracuse.   

The new plan also supports new large-scale projects, including: modernizing the Livingston Avenue Bridge in Albany; reconnecting neighborhoods across the Kensington Expressway in Buffalo; converting Route 17 to I-86 in Orange and Sullivan Counties; and assessing ways to improve road capacity at the Oakdale Merge in Suffolk County.  

The Five-Year DOT Capital Plan also increases the existing BRIDGE-NY program by $1 billion, adds a new $1 billion Operation Pave Our Potholes program, and continues record commitments to funding local highway and bridge programs through the Consolidated Highway Improvement Program (CHIPS).    

Child Care  

Building on $832 million in existing subsidies and $2.3 billion in Federal child care resources, the Budget includes new investments to support children, parents, and the child care industry.  

  • Increase Eligibility for Subsidies— child care subsidy eligibility will be increased from up to 200 percent of the Federal poverty level  to up to 300 percent of the Federal poverty level over three years. Fully phased in, more than $535 million annually will allow an additional 400,000 children to become newly eligible.
  • Maintain Access to Child Care Providers— $125 million in funding annually is included to maintain child care subsidies when rates increase in 2022.
  • Support Child Care Workers—$75 million is invested in child care worker wages, an endorsement of the importance of their work.  

Small Businesses  

Governor Hochul is proposing a nearly billion-dollar plan focused on the State’s small businesses, including targeted programs to address small business needs and ensure all types of small businesses prosper throughout the State.  Key components of this plan include:     

  • Funding for Small Businesses of the Future – Capital and venture debt awards to emerging small businesses in the innovation sector, including minority-and-women-owned companies often overlooked by venture investments.   
  • Seed Funding for Small Business – A $200 million flexible grant program for early-stage businesses recently opened despite the COVID-19 pandemic.   
  • Small Business Lending Initiative – Provide reduced interest rate and accessible loans to expanding small businesses.    

SUNY and CUNY  

$1.5 Billion for SUNY and CUNY: The Executive Budget will invest more than $300 million in SUNY and CUNY operations each year over the next five years. Governor Hochul also will partner over the next year with SUNY, its individual institutions, and key stakeholders to develop a plan to implement her vision to transform SUNY into the top statewide system of public higher education in the country. The Executive Budget will help start this transformation with funding for new engineering buildings to help the University at Buffalo and Stony Brook University become SUNY’s flagship institutions.

The Executive Budget will increase operating support to SUNY State-operated campuses and City University of New York (CUNY) senior colleges by fully reimbursing colleges for the $108.4 million cost of “Tuition Assistance Program (TAP) Gap” tuition credits, providing additional State support of $59.6 million to CUNY and $48.8 million to SUNY. The university systems will also receive an $18.6 million in additional operating revenue from Executive Budget legislation to raise the amount of State support that campuses receive for Excelsior Scholarship recipients, increasing operating support by $13.7 million to SUNY State operated campuses, $2.8 million to CUNY senior colleges and $2.1 million to community colleges.  

Expand Part-Time Students’ Access to TAP: The Executive Budget includes $150 million to expand TAP, which currently is largely unavailable for students studying part time, to cover students enrolled in six or more credits of study at a SUNY, CUNY, or not-for-profit independent college – an investment estimated to provide support to 75,000 additional New York students annually.    

Energy and the Environment  

Clean Water, Clean Air, and Green Jobs Environmental Bond Act: The Executive Budget includes $4 billion for the landmark Clean Water, Clean Air, and Green Jobs Environmental Bond Act.  This historic initiative will provide the support New York needs to restore critical environmental habitats; reduce flood risks; conserve additional lands and open spaces; protect and improve our water resources; and invest in climate change mitigation projects that will reduce pollution and lower carbon emissions.  The Bond Act will also support a substantial investment in the Clean Green Schools initiative that will reach every public school located in a disadvantaged community.   

Offshore Wind: The Executive Budget includes $500 million investment to develop the State’s offshore wind supply chains and port infrastructure.  This nation-leading initiative will create 2,000 jobs in a growing industry, while helping to make New York the offshore wind capital of the country for years to come.   

Housing  

Launch a New Five-Year, $25 Billion Comprehensive Housing Plan. The Executive Budget advances a new $25 billion, five-year Housing Plan to create and preserve 100,000 affordable homes, including 10,000 homes with support services for vulnerable populations, and electrify an additional 50,000 homes as part of the State’s plan to electrify one million homes and make another one million electrification-ready. Funding includes $5.7 billion in capital resources, $8.8 billion in State and Federal tax credits and other federal allocations, $11 billion to support the operation of shelters and supportive housing units and to provide rental subsidies.   

Combating Gun Violence  

The Executive Budget includes $224 million to fund initiatives that will strengthen the gun violence prevention efforts of law enforcement and community-based organizations. Through these actions, we will work to restore New Yorkers’ sense of safety and community. Some of these actions include:    

  • Triple Resources for Crime Gun Tracing Efforts – The Executive Budget provides $350,000 in funding to triple the state’s gun violence intelligence resources by staffing the New York State Intelligence Center (NYSIC) with a team of analysts necessary to process and investigate crime guns across the state.   
  • Strengthen Law Enforcement Partnerships – The Executive Budget provides $13.1 million to expand the use of Community Stabilization Units that partner the most experienced State Troopers with local law enforcement agencies to combat community-specific crime problems.    
  • Expand the State’s Direct Support to Local Law Enforcement (GIVE) – The Executive Budget increases funding to $18.2 million for New York’s nationally recognized Gun Involved Violence Elimination (GIVE) initiative which supports local law enforcement efforts to stop the gun violence in New York. This investment will enable the launch of several new initiatives which will support law enforcement’s ability to clear non-fatal shooting cases, engage in youth-centered community programming, and reduce recidivism for individuals under community supervision.  
  • Triple Investment in Community-Based Gun Violence Response (SNUG) – The Executive Budget sustains last year’s emergency increase in funding for New York’s SNUG Outreach program and further expand support to combat the spike in gun crimes. This investment of $24.9 million will expand hospital-based and street outreach programs to touch all corners of the state. It will facilitate the piloting of several new initiatives which provide wrap-around services for youth, job-readiness and work-placement training.  
  • Respond to Regional Needs in the Aftermath of Gun Violence – The Executive Budget includes $20 million in new funding to support the people and places that have been most impacted by the spike in gun violence. This will allow the deployment of innovative community empowerment and crime-reduction programming in high-need areas that will facilitate the repairing and rebuilding of regions victimized by crime involving guns.    

Addressing Addiction and the Opioid Crisis  

Under Governor Hochul’s leadership, the Office of Addiction Services and Supports (OASAS) will take significant steps to address the opioid crisis by improving access to addiction treatment services, removing barriers to treatment, developing new and innovative treatment models, and expanding the number of treatment facilities in communities around New York State.    

The Executive Budget provides an increase of $402 million (56 percent) in operating and capital support for OASAS to enhance prevention, treatment and recovery programs targeted toward addiction services, residential service opportunities, and primary prevention activities consistent with state opioid settlement agreements; and invests more than $100 million in new resources from the Opioid Stewardship Tax and litigation settlements with pharmaceutical manufacturers and distributors. Of these funds, $113 million will pass through the State to local municipalities, consistent with settlement agreements. 

Governor Andrew Cuomo, Infrastructure, New York State politics, News & Photo Features

NYS Passes Budget With REcord School Aid, Green Economy Investments, Rent Relief, ChildCare, Small Biz

The newly opened Moynihan Station, New York City. New York State has just adopted its budget which continues historic investments to “reimagine, rebuild and renew New York in the aftermath of the worst health and economic crisis in a century,” and continues funding for the largest-in-the-nation $311 billion infrastructure plan and shift to a green economy © Karen Rubin/news-photos-features.com

Governor Andrew M. Cuomo, Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie today announced an agreement on the FY 2022 New York State Budget. The final budget accomplishes major legislative priorities, including:

  • A record $29.5 billion in aid to schools aid;
  • $29 billion in public and private green economy investments;
  • $2.4 billion for rent and homeowner relief;
  • $2.4 billion for child care;
  • $2.1 billion for excluded workers;
  • $1 billion for small business recovery;
  • A first-in-the-nation plan to make broadband internet affordable;
  • Legalizing mobile sports betting; and
  • Implementing comprehensive nursing home reforms.

Additionally, the Enacted Budget closes the deficit and invests in the ongoing response to the pandemic and recovery efforts.

Spending

The budget agreement includes spending in the following categories:

  • Total State Operating Funds: $111 billion
  • All Funds spending $212 billion
  • School Aid: $29.5 billion, a $3 billion increase.

“New York was ambushed early and hit hardest by COVID, devastating our economy and requiring urgent and unprecedented emergency spending to manage the pandemic,” Governor Cuomo said. “Thanks to the State’s strong fiscal management and relentless pursuit to secure the federal support that the pandemic demanded, we not only balanced our budget, we are also making historic investments to reimagine, rebuild and renew New York in the aftermath of the worst health and economic crisis in a century. This budget continues funding for the largest-in-the-nation $311 billion infrastructure plan, establishes a groundbreaking program to provide affordable internet for low-income families and enhances public safety through police reforms, all while continuing to provide relief to New Yorkers and small businesses as we recover from the pandemic. I thank the legislative leaders – Senate Majority Leader Stewart-Cousins and Assembly Speaker Heastie – for their partnership in helping make this critical budget a reality and delivering results for the people of this state.”

“New York State approached this year’s budget with many challenges and the ongoing Covid-19 pandemic.” Senate Majority Leader Andrea Stewart-Cousins said. “However, driven by a commitment to long-term equity and prosperity for all, we have accomplished a great deal. I am proud of the strides we have made in funding our schools, helping businesses rebuild, and protecting New York’s most vulnerable. Working and middle-class taxpayers will receive the relief they desperately need, while the wealthiest New Yorkers will help their neighbors. This budget makes New York better for all. In the remaining months of session, the Senate Majority will continue to deliver results that are reflective of our progressive values and priorities.”

“Budgets are a statement of values, and in my two decades of service to the people of New York I can’t think of a more far-reaching and impactful budget than this,” Assembly Speaker Carl Heastie said. “It meets longstanding goals of our Assembly Majority and addresses the historic inequities that have existed for too long. My colleagues and I have worked tirelessly to deliver a budget that will help New York rise from this health crisis and recover from its devastating economic impacts while upholding our commitment to putting New York families first. I am particularly proud that we have been able to make historic investments in our schools, keep higher education within reach, deliver the relief that our small businesses need to get back on their feet, and provide critical funding for child care that families need. I thank all my colleagues, especially Ways and Means Committee Chair Helene Weinstein, for their tireless efforts and advocacy in crafting a budget that truly meets the needs of all New Yorkers.”

Governor Andrew Cuomo, News & Photo Features

Cuomo Signs New York State Budget Advancing Progressive Priorities Including Campaign Finance Reform

New York State Governor Andrew M. Cuomo today signed the 2021 Budget. The budget is balanced, includes no new taxes, continues to phase in tax cuts for the middle class, enacts the strongest Paid Sick Leave program in the nation, and advances other progressive priorities including the legalization of gestational surrogacy. “I understand we’re all consumed with the coronavirus situation but we have to be able to walk and chew gum. We have to move forward at the same time and that’s why passing the budget and these pieces of legislation were important. © Karen Rubin/news-photos-features.com

Governor Cuomo: “I understand we’re all consumed with the coronavirus situation but we have to be able to walk and chew gum. We have to move forward at the same time and that’s why passing the budget and these pieces of legislation were important. These issues are still important and child vaping, et cetera, surrogacy, these are major issues for people. And they passed last night and congratulations.”

Governor Andrew M. Cuomo today signed the FY 2021 Enacted Budget. The budget is balanced, includes no new taxes, continues to phase in tax cuts for the middle class, enacts the strongest Paid Sick Leave program in the nation, and advances other progressive priorities including the legalization of gestational surrogacy.

This is a transcript of the Governor’s remarks:

State budget passed last night, 3:00 a.m., as you know. The state budget was extraordinary. First, it passed a lot of major policy initiatives that we should all be very proud of: the nation’s first domestic terrorism law. It improved bail reform. It addressed this child vaping scourge going across the nation. We banned fentanyl, a ban against repeat subway sex offenders, campaign finance reform, paid sick leave, middle class tax cut, very aggressive airport construction program and accessible renewable energy sitings.

I understand we’re all consumed with the coronavirus situation but we have to be able to walk and chew gum. We have to move forward at the same time and that’s why passing the budget and these pieces of legislation were important. These issues are still important and child vaping, et cetera, surrogacy, these are major issues for people. And they passed last night and congratulations.

The budget was difficult because the State has no money, and how do you do a budget when you can’t really forecast revenues, and we came up with a somewhat novel budget that actually is calibrated to future revenues or losses. So we really start with an assumption and then what we’re saying is when we see how much revenue the state makes, how fast the economy comes back, what the expenses are, we’ll calibrate accordingly.

We are heavily reliant on the federal aid legislation that gets passed. The federal government has passed a couple of pieces of legislation. They’re planning to pass another piece of legislation. It’s very important that whatever legislation they pass helps state and local governments. When you deprive a state government all you are actually achieving is that that state government has to turn around and not fund the programs that were dependent on that state government. We fund education, health care. I spoke to Speaker Pelosi today. She’s working on the program for the next piece of legislation. She understands fully the need of state government. She understands fully the need of local governments. She understands my position on how New York was shortchanged in the past bill and she said she’s going to do everything she can do to help New York. I’ve worked with the Speaker many times. I’ve known her for 30 years and I believe her and her credibility and her competence is unparalleled, in my opinion. So I’ll be working with the Speaker and the rest of the Congressional delegation going forward. But we need federal assistance. Depending on how much federal assistance we get, will be that calibration of the budget going forward.

2021 MAKING PROGRESS HAPPEN ENACTED BUDGET HIGHLIGHTS

Establishing Paid Sick Leave for Working New Yorkers: To further empower New York’s workers and protect all consumers in the State, the FY 2021 Enacted Budget enacts a paid sick leave program for working New Yorkers. Businesses with five to 99 employees will provide their employees at least five days of job-protected paid sick leave per year and businesses with 100 employees or more will provide at least seven days of paid sick leave per year. Smaller businesses, with four or fewer employees, will guarantee five days of job-protected unpaid sick leave to their employees every year. Small businesses already providing paid sick leave will be able to so.

Legalizing Gestational Surrogacy in New York State: The FY 2021 Enacted Budget legalizes gestational surrogacy in New York State once and for all, helping LGBTQ couples and couples struggling with infertility. The legislation will also establish criteria for surrogacy contracts that provide the strongest protections in the nation for parents and surrogates, ensuring all parties provide informed consent at every step of the process, and will create a Surrogates’ Bill of Rights, which would ensure the unfettered right of surrogates to make their own healthcare decisions, including whether to terminate or continue a pregnancy and that surrogates have access to comprehensive health insurance and independent legal counsel of their choosing, all paid for by the intended parents. The legislation included in the Budget will also create a streamlined process for establishing parenthood when one of the individuals is a non-biological parent, a process known as “second parent adoption.”

Passing the “New York Hate Crime Anti-Terrorism Act”:  The FY 20201 Budget establishes a “domestic act of terrorism motivated by hate” crime as a new A-1 class felony punishable by up to life in prison without parole.

Closing the Out-of-State Gun Loophole: The FY 2021 Enacted Budget includes legislation to prohibit individuals from obtaining a gun license who commit serious offenses out-of-state that would disqualify them from obtaining a gun license if committed in New York. This will provide greater consistency in New York’s licensing scheme and ensure individuals who are prohibited from purchasing a firearm are not able to do so. The Enacted Budget also includes legislation to require all state and local law enforcement agencies in the state to opt in to the ATF’s crime gun trace data sharing program and submit crime guns recovered through the ATF’s eTrace system. Additionally, the Enacted Budget includes legislation to amend the Mental Hygiene Law to allow New York to share reports of individuals who are a danger to themselves or others with other states.

Housing and Services for People who are Homeless, Including Those with Mental Illness: New York’s homeless community and those with mental illness are among the hardest populations to help. The FY 2021 Enacted Budget includes an aggressive strategy and additional support to provide housing and services to these vulnerable populations.

Enact a Comprehensive Tobacco Control Policy. Governor Cuomo has taken unprecedented steps to ensure the health and safety of all New Yorkers by combatting the use of harmful tobacco and nicotine products. The Enacted Budget prohibits the sale or distribution of e-cigarettes or vapor products that have a characterizing flavor unless approved as part of an FDA pre-market approval; prohibits the sale of tobacco products, including e-cigarettes, in all pharmacies; restricts the delivery of e-liquid products only to NYS-licensed vapor retailers; restricts the public display of tobacco and vapor products near schools; requires manufacturers of vapor products to disclose to the DOH Commissioner and the public, information regarding the ingredients, by-products, or contaminants in vapor products, whether intentional or unintentionally added; bans certain carrier oils if they are determined to be harmful; bans coupons and manufacturer discounts and displays in shops; and increases penalties for illegally selling tobacco products to minors.

Prescription Drugs: The FY 2021 Enacted Budget includes a three-part plan to lower prescription drug costs for all New Yorkers. The Budget caps insulin co-payments at $100 per month for insured patients to help address the rising cost of insulin that has resulted in diabetes patients rationing, skipping doses and not filling prescriptions. Finally, the Enacted Budget establishes a commission of experts to study the feasibility and benefits of a Canadian drug importation program and submit a plan to the U.S. Department of Health and Human Services for review.

Banning the “Pink Tax”: The FY 2021 Enacted Budget prohibits gender-based pricing discrimination for substantially similar or like kind goods and services. The legislation would require certain service providers to provide price lists for standard services upon request and notice that gender-based price discrimination is prohibited under state law. Businesses that violate the law would be subject to civil penalties.

Authorized the Creation of a $3 Billion Restore Mother Nature Bond Act: The Budget authorizes the creation of a Bond Act to fund critical environmental restoration and climate mitigation projects in every corner of the state to ensure New York is able to adapt to the intensifying impacts of climate change, and reduce emissions, while creating jobs and local economic development. As part of the larger Restore Mother Nature Initiative, the Bond Act will be a key source of funding for projects focused on reducing flood risk, investing in resilient infrastructure, restoring freshwater and tidal wetlands, preserving open space, conserving forest areas, and reducing pollution from agricultural and storm water runoff. It will also fund up to $700 million in projects to fight climate change, including green buildings. It also aims to spend 35 percent of the funds on projects to benefit underserved areas of the state. The Budget Director will assess the state’s finances and the economic outlook later this year and make a determination as to whether to move forward with the Bond Act.

Permanently Banning Hydrofracking: The Enacted Budget codifies Governor Cuomo’s ban on the Department of Environmental Conservation approving permits that would authorize an applicant to drill, deepen, plug back or convert wells that use high-volume hydraulic fracturing as a means to complete or recomplete a well. In addition, it places a moratorium on future gelled propane hydrofracking applications until the Department can conduct an analysis of the impacts of this completion method. This will protect the health of New Yorkers and ensuring permanently that our environment is not harmed by this practice.

Continuing Middle Class Tax Cuts: This year’s Enacted Budget continues to lower Personal Income Tax rates for middle-class New Yorkers. In 2020, the third year of the multi-year tax cuts enacted in 2016, income tax rates have been lowered from 6.85 percent to 6.09 percent for taxpayers in the $43,000-$161,550 income bracket, and to 6.41 percent in the $161,550-$323,200 income bracket. These cuts are expected to save 4.7 million New Yorkers over $1.8 billion this year. Furthermore, income tax rates will continue to drop to 5.5 percent for taxpayers in the $27,900-$161,550 tax bracket and 6 percent in the $161,550-$323,200 bracket. When the cuts are fully phased in, middle class taxpayers will have received an income tax rate cut up to 20 percent, amounting to a projected $4.2 billion in annual savings for six million filers by 2025. As the new rates phase in, they will be the State’s lowest middle-class tax rates in more than 70 years.

Increasing and Modernizing Emergency Response Capacity: Over 60 percent of New York counties have been flooded twice in the past 10 years. We must be ready to handle these increasing, life-threatening, emergency situations. It is a new and growing challenge for our state operations. The FY 2021 Enacted Budget sustains $12 million in capital funding to increase and update the State’s emergency response capacity so our brave women and men have the right equipment to do their jobs.

Addressing Veteran and Law Enforcement Suicides: The FY 2021 Enacted Budget invests $1 million to partner with organizations to help veterans, law enforcement and first responders with suicide prevention efforts. The Budget also directs state agencies to expand suicide prevention strategies for veterans, law enforcement, correctional officers and first responders, including a new campaign by the Office of Mental Health to reduce the stigma of mental illness. Additionally, the State will convene a panel of stakeholders and experts at its annual Suicide Prevention Conference to develop and implement strategies for preventing suicide among these special populations.

Adding E Pluribus Unum to the State Coat of Arms: Our founding fathers said clearly that the idea of unity was the key to America’s future. In 1782, on the first seal of the United States, they said it in three simple words – E pluribus unum, out of many one. This federal government and our nation seem to have forgotten that essential American principle. In this time of turmoil, New York State will remind the nation of who we are by adding E pluribus unum to the State’s coat of arms as part of the FY 2021 Enacted Budget, proclaiming at this ugly time the simple truth that without unity we are nothing.

Highlights of the FY 2021 Enacted Budget are available here.

Education, New York State politics, Tax Reform, Taxes

Governor Cuomo Holds NYS Budget Hostage Without Permanent Property Tax Cap; I Object

Voting on a school bond referendum, Great Neck, Long Island. New York State’s property tax cap removes local control over spending for education and local services including parks and libraries © Karen Rubin/news-photos-features.com

By Karen Rubin, News& Photo Features

New York State Governor Andrew Cuomo has said he won’t sign the state budget unless it makes permanent the property tax cap.

“The highest tax in the state is the property tax and it is a killer,” Governor Cuomo said.”We want to reduce economic pressure on families by making sure government is not aggravating the problem with increased expenses. We’re going to cut your state income tax and we’re going to cap your property taxes so you know it’s not going higher than 2 percent. And I will tell you this as sure as I am before you today: if we do not have the permanent property tax cap in that state budget, this hand will never sign that state budget until it’s in there.”

From the very beginning, I have objected to this trampling off local control with an arbitrary and unreasonable constraint designed to hamstring and ultimately destroy local governments. Cuomo’s original intent was to force school districts and other local governments to cannibalize their reserve funds; the second was to force consolidation and dissolution of local governments and the third was to use local taxes as the bogeyman, so politicians could appear to be on the side of taxpayers.

Of course the property tax is the largest state tax and of course school taxes are the largest component. Something has to be “largest”. What should be? But local property taxes are spent where they are used, and local people have the greatest ability to participate in spending decisions. In fact, school and library taxes are the only taxes we taxpayers directly vote.

What the property tax cap does, though, is remove local control. Communities should have the right to decide if they want to improve their schools or parks. The property tax cap which basically keeps the annual increase to 2% or the rate of inflation whichever is less says: we don’t want any growth or improvement or new investment in your community. We want the status quo, and if that means deterioration, so be it. (Little known fact: the property tax cap incentivizes bonding because the debt service isn’t counted toward the cap.)

Somehow, and fairly ingeniously I think, the Great Neck Public School district has managed to continue to be among the best in the country and still average only 1.8 percent increase in the tax levy since the property tax cap was implemented in 2012, despite increasing enrollments and unfunded state mandates. This year, though, through the complicated formula, the school district could have raised taxes by 4.09 percent and still fall within the cap, is only seeking 1.94 percent increase. .

I resent the property tax cap by which the Governor and state legislators can declare themselves champions of reducing or controlling taxes.

But here’s the thing: New York State’s property taxes are not the highest in the nation; Nassau County’s taxes are not the highest; and both of these do not take into account that Long Island and New York’s incomes and our housing values are higher.

According to a survey by Wallethub, a financial services company, New York State ranks 8th (not first) in property taxes. New York ranks 43rd in its real estate tax rate, at 1.68 percent. You know which states are higher? Nebraska (1.80), Texas (1.83), Vermont (1.83), Wisconsin (1.94), Connecticut (2.07), New Hampshire (2.20), Illinois (2.31), and New Jersey (2.44) (See the study: https://wallethub.com/edu/states-with-the-highest-and-lowest-property-taxes/11585/)

Even so, do you want to be Alabama, which is #2 on the list for lowest taxes, where the median home value is $132,000 and the tax is $558 (0.42%), or Louisiana, #3, where the median home value is $152,900 and median tax is $795 (0.52%)? Louisiana ranks 51st in health care, Alabama is 48th. New York is 17th (fourth most physicians per capita)

USA Today ranks New York’s public education 9th noting, “Between 2003 and 2015, the achievement gap between eighth graders living in poverty and their wealthier peers narrowed by the largest amount of all states…Annual public school funding totals $18,665 per pupil in New York, the third highest expenditure of all states.” (Top three are Massachusetts, New Jersey and Vermont). Alabama ranks 43rd (14th lowest in public school spending at $10,142). Louisiana is 46th, Mississippi is 48th.

Yes, total taxes are high: New Yorkers spend 17.07 percent of income on taxes, second highest after Connecticut (17.65 percent). But New York State is spending billions on a 21st century infrastructure and racing toward 50:50 clean energy by 2030. This is where I want to live. So do 20 million others, a number that is increasing, even as unemployment rates are at the lowest ever and the number of jobs is at an all-time high.

We pay a lot in taxes because our incomes are higher and our housing values are higher, what is more, we get more for our money, making for a higher quality of life.

The states that don’t charge an appropriate amount of state and local taxes – that is related to the cost of providing services and public investment – depend on federal handouts. New York is one of 11 states that send more money to the federal government than it gets back, in fact the #1 donor state, sending $36-$48 billion more to the federal government than it gets back. Alabama is 4th “most federally dependent state”; Louisiana is 10th.

New York sends the second highest amount in federal taxes, $133 billion (California sends $227 billion), and is fourth in the average amount of federal taxes per adult ($8,490), behind Connecticut $10,279), Massachusetts ($9,445), and New Jersey ($8,811).

(Here’s an idea: New York should do what tenants do in a landlord dispute and put that $36 billion into escrow until the SALT deductibility issue is fixed.)

But we shouldn’t be punishing our localities because of the criminality of Republicans to use the tax code as political weapon – according to State Comptroller Tom Dinapoli, the SALT deduction cap has driven down tax receipts by $2.3 billion, as wealthiest New Yorkers choose other places for primary residency.

But the tax cap is also a political weapon.

The larger objective is to eliminate local municipalities entirely – to force villages to consolidate into towns, towns into counties, school districts into larger school districts. But the fallacy in that is all that it saves is a few administrative positions. Villages and school districts already have cooperative purchasing, mutual aid; school districts even cooperate on transportation where feasible. Our school district spends 4 percent of its budget on administration, the lion’s share, 75 percent, on instruction (12 percent on building, grounds & capital projects, 6 percent on transportation). (To see where your schools spend every penny, come to Great Neck South High School this Saturday at 9:30 am for the line-by-line budget review.)

The state boasts that since implementation the tax cap has “saved” taxpayers $24.4 billion statewide – that works out to $1000 per capita, divided by 7 years, or $142 a year. I’m not sure that’s worth giving up local control.

But just as Cuomo and the Congressmembers decry Trump’s disparity in federal spending for blue states versus red states and the attack on state control over its ability to raise revenue and spend, it is the same thing with local spending: there is gigantic  disparity in the level of state aid to school districts, with the result that New York City only has to raise 50 percent of its school budget from property taxes, while Great Neck, which gets just 4 percent from the state, has to raise 95 percent through property taxes. Here’s another measure: Roosevelt, with 3270 enrolled students, gets $53 million in state aid; Great Neck, with 6399 enrolled students, gets $10 million – the difference made up from property taxes. That’s just the way it is.

What the property tax cap means is that virtually all Great Neck’s school spending is governed by the cap; other districts have much less that is controlled by the tax cap.

The responsibility for determining if our elected representatives are properly handling our tax appropriations is on the community, not an arbitrarily selected cap enshrined in law.

We see what our school taxes (and park and library and sewer district) pay for and I don’t want the state – or some politician looking to score points – deciding we can’t have low class size or a robotics club or a fencing team or an opera performance (Great Neck South High marks its 50th anniversary full-scale opera production, April 12). This community has decided these things are just as important to our district’s mission of helping every child fulfill their full potential as cramming the latest incarnation of ELA and math or operating school buildings as if they were prisons. Our mission has been to instill a love of life-long learning. And the investment this community has made in public education has brought solid ROI day after day.

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