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