Summary of the New York State Budget

Transcription

1 1 Summary of the New York State Budget The following is a summary of the enacted New York State budget. This document will be updated as needed. The enacted state budget includes $155.6 billion in all funds spending. The following is a summary of the final FY New York State budget. This document will be updated as more information becomes available. Infrastructure Investment The enacted budget includes $27.14 billion for State DOT and Thruway programs, and $27.98 billion for MTA programs. The enacted budget creates the Design and Construction Corporation as a subsidiary of the Dormitory Authority. This new Authority, opposed by CSEA, has authority to oversee all public works projects valued above $50 million and can assign Dormitory Authority employees to work for it. The Authority will be run by three appointees of the Governor. The enacted budget provides $100 million in and another $100 million in to for water quality infrastructure projects, an increase of $25 million per year over the program established in last year s budget. Each year, at least $10 million of this funding will be spent on compliance with environmental and public health laws. The design build method of project delivery was included in the budget for specific projects in New York City, including the Jacob Javits Convention Center, the Empire Station Complex, the James A. Farley Redevelopment, and the Pennsylvania Station New York Redevelopment. Additionally infrastructure investments include $50 million for non profit human service organizations. State Operations The enacted New York State budget includes $96.2 billion in total State Operating funds, an increase of 2% over

2 2 Major budget actions that affect state employees include: Retiree Health Insurance The enacted budget rejects the proposal to institute a tiered system for New York State Health Insurance Program (NYSHIP) premiums for persons retiring on or after October 1, 2016 based on years of service and salary grade. The proposal would have increased health care costs for all state retirees (other than state police, fire, or corrections officers) with less than 30 years of service. CSEA strongly opposed this proposal. Canal Corporation The final budget transfers the Canal Corporation from the Thruway Authority to the Power Authority on January 1, Before July 1, 2016 the state legislature must pass legislation that details the implementation of this transfer. CSEA was able to secure language that will protect employees during this transfer. Office of Children & Family Services (OCFS) Raise the Age was not included in the final budget. Thruway Authority The enacted budget appropriates $700 million for the Thruway stabilization program and rejects the establishment of a tax credit for tolls paid by frequent users of the Thruway. Office for People with Developmental Disabilities (OPWDD) The final state budget included $24 million for the expansion of CSEA s care pilot programs and to expand state operated respite services The enacted budget requires OPWDD to provide at least 45 day notice to the legislature and to impacted labor organizations when a closure or transfer of a state operated individualized residential alternative (IRA). The law allows exemptions in case of exigent circumstances impacting the health, safety, or welfare of the residents of the IRA as determined by OPWDD. The law also requires OPWDD to make reasonable efforts to confer with the affected workforce and appropriate parties to inform the affected workforce, the residents of the IRA, and their family members, where appropriate, of the proposed closure or transfer plan.

3 3 Office of Mental Health (OMH) CSEA opposed giving the Commissioner of the Office of Mental Health the authority to reduce 400 state operated inpatient beds without requiring the office to give the legally required one year notification. The final budget did not include any language for any additional bed reduction. However, OMH claims it still has authorization to reduce 200 beds from earlier notice. CSEA was able to keep our notice that requires one year notification prior to the closure or substantial reduction in services. Unified Court System (UCS) The UCS budget will grow by 2.26% to $2.132 billion. Workers Compensation Board The enacted budget rejects the Governor s proposed changes to the Workers Compensation system.csea opposed the changes. Department of Labor The final budget raises the minimum wage as follows: New York City (11 or more employees) New York City (10 or fewer employees) Westchester, Nassau, Suffolk Counties Rest of State 12/31/2016 $11.00 / hour $10.50 / hour $10.00 / hour $9.70 / hour 12/31/2017 $13.00 / hour $12.00 / hour $11.00 / hour $10.40 / hour 12/31/2018 $15.00 / hour $13.50 / hour $12.00 / hour $11.10 / hour 12/31/2019 $15.00 / hour $13.00 / hour $11.80 / hour 12/31/2020 $14.00 / hour $12.50 / hour (see below for additional information) 12/31/2021 $15.00 / hour

4 4 After the increase to $12.50 per hour in 2020 for the rest of the state, the minimum wage will be increased based on an inflation factor until it reaches $15.00 / hour. However, on or after January 1, 2019, the Division of Labor will consult with the Division of Budget to conduct an analysis of the economy in each region and the effect of the minimum wage increases statewide to determine whether a temporary suspension of the scheduled increases is necessary. Office of Alcoholism and Substance Abuse Services The final budget appropriates just under $621 million for OASAS operating expenses, a 5.3% increase over the budget. This includes $166 million to combat the heroin and opioid crisis, an increase of $25 million over the Executive Budget proposal. Department of Transportation The state s Consolidated Local Street and Highway Improvement Program (CHIPS) will receive $438 million this year to help local governments move forward with important local highway, road, and bridge repair projects. The Pave NY/Bridge NY program will receive $800 million over the next four years for local roads and bridges. Department of Motor Vehicles The budget rejects the Governor s proposal to automatically register persons to vote when they apply for a new or renewed motor vehicle license or identification card issued by DMV. Local Governments The budget preserves $757,000 in funding to help counties lower caseloads for child protective service workers by hiring new staff or allowing for overtime. The enacted budget appropriates $30 million for local governments in which a power plant closes on or after June 25, 2015 if the closing caused a reduction of at least 20% in property tax collections or PILOT payments. The enacted budget appropriates $20 million for a municipal consolidation competition. $25 million for the Empire State Poverty Reduction program, with investments focused in high poverty areas $12.5 million in additional payments for the City of Albany $100 million for a Downtown Revitalization Initiative, where 10 communities will be awarded funding. Health The Medicaid program will grow by 3.4% to $18.5 billion.

5 5 The budget creates a new $200 million Statewide Health Care Transformation Program to provide capital funding to support projects that replace inefficient or outdated health care facilities as part of a merger, consolidation, acquisition or other restructuring activity. The final budget extends for two years an exemption to professional licensure laws for certain social work and mental health professional licensure requirements of persons employed by a program or service operated, regulated, funded or approved by OMH, OPWDD, OASAS, DOH, SOFA, OCFS, OTDA, DOCCS, and/or local governmental units or social services districts. Roswell Cancer Institute will receive $102.6 million (0% change from FY2016). Education K 12 Schools The enacted budget provides a $1.5 billion (6.5%) increase in school aid, including a full restoration of the $434 million outstanding in the Gap Elimination Adjustment (GEA) and a $627 million increase in Foundation Aid. Total school aid is $24.8 billion. Additional education initiatives: $175 million to develop community schools The education tax credit was not included in the budget. The enacted budget rejects extending mayoral control of New York City schools until Libraries Funding is increased by $4.4 million for libraries across the state. In addition, libraries in the Metropolitan Transit Authority (MTA) area will continue to be excluded from the MTA tax. An appropriation of $1.3 million is made to reimburse libraries for this tax. State University of New York (SUNY) Higher Education The enacted budget restores the $18.6 million state subsidy for the three SUNY Hospitals (Syracuse, Brooklyn, and Stony Brook). The budget provides more than $1 billion for the Tuition Assistance Program (TAP) and freezes SUNY and CUNY tuition this year. The new budget also boosts funding for SUNY and CUNY community colleges with an additional $20 million, increasing the full time equivalent (FTE) funding for the state s community colleges by $100 and making the base aid $2,697 per FTE for

6 6 The final budget does not include authorization for another five years of rational tuition increases that would have allowed campuses to raise tuition by $300 per year. Human Services & Child Care The budget does include $10 million to pay for child care facility inspections required by federal law. In addition, Facilitated Enrollment is expanded to begin a pilot program in Erie County. All existing areas with a facilitated enrollment program continue to be funded. The enacted budget includes an additional $5 million in child care subsidies as well as $10 million in funding for new child care facility inspections required by the federal government. Veteran s Issues In October, the Governor vetoed, for a second time, legislation allowing all honorably discharged military veterans to buy back up to three years of pension credit. At that time he stated that the legislation would be included in the budget. Unfortunately, it was not included due to opposition from the Governor. Revenue / Taxes Personal Income Tax Cuts The final budget includes tax cuts targeted at taxpayers with incomes between $40,000 and $300,000 that will reach $4.2 billion annually by (see addendum I) The small business tax cuts proposed in the Executive Budget were not included in the enacted budget. Education Tax Credits The enacted budget rejects the establishment of a tax credit for contributions to education entities. CSEA strongly opposed this proposal that would have disproportionately benefited wealthy individuals and corporations. School Tax Relief (STAR) Program Actions The enacted budget accepts the Governor s proposal to convert the existing STAR exemption into a refundable personal income tax credit for new applicants. Current recipients of the STAR exemption may continue to receive the exemption while they own their current home. The final budget denies, however, the Governor s proposal to freeze STAR benefits at levels.

7 7 Urban Youth Jobs Program Tax Credit The annual availability of credits available under the Urban Youth Jobs Program, which incentivizes businesses to hire disadvantaged youth in high poverty areas, is increased from $20 million to $50 million for 2016 and Economic Development The enacted budget includes significant funding for various economic development projects throughout the state, including: $638 million for projects at Nano Utica; $685 million for high technology manufacturing projects in Chautauqua and Erie Counties; $125 million for Suny Poly projects in Clinton County; $200 million for additional Upstate Revitalization Initiative projects; $150 million in capital funding for the Regional Economic Development Councils along with another $70 million in Excelsior Tax Credits; $199 million for the New York Works Economic Development Fund; $85 million for unspecified economic development or infrastructure projects; $66.5 million to advertise state programs, including START UP NY. Ethics/Elections The ethics reforms proposed by the Governor, including pension forfeiture for public officials, were not included in the final budget. Similarly, elections reform proposals including public financing for political campaigns, early voting, and an outside income cap on state lawmakers were not included in the final budget. Other Issues Paid family leave The budget agreement includes a paid family leave program. The program will be implemented as follows:

8 8 Number of Weeks of Leave Allowed Benefit 1/1/ /31/2018 1/1/ /31/2019 1/1/ /31/2021 1/1/2021 and after 8 50% of your average weekly wage (AWW) up to 50% of the statewide average weekly wage (SWAWW) 10 55% AWW up to 55% of the SWAWW 10 60% AWW up to 60% SWAWW 12 67% AWW up to 67% of the SWAWW Starting in 2018, a paid family leave program will be phased in for employees to care for a newborn or newly adopted child, a family member (this includes a child, parent (including in laws) grandparent, grandchild, spouse, or domestic partner) with a serious health condition, or to relieve family pressures when someone is called to active military service. For example, when fully phased in in 2021, an employee who makes $45,000 per year could take 12 weeks of paid family leave and receive $580 per week while they are on leave. The program will be funded entirely through a nominal payroll deduction on employees so it costs businesses both big and small nothing. Employees are eligible to participate after having worked for their employer for six months. Health Republic The final budget includes a new fund to allow settlement money to be used to reimburse health care providers with unpaid claims caused by the collapse of insurer Health Republic. Constitutional Convention The final budget does not include any money for planning for a constitutional convention. The Governor had proposed $1 million. Environmental Protection Fund The final budget includes $300 million for the Environmental Protection Fund, up from $177 million in

9 Addendum I to Final Budget Summary Married Filing Jointly Current Rates (after 2011 and before 2018) New rates per FY Budget Income Rate After 2024 up to $16,000 4% unchanged unchanged unchanged unchanged unchanged unchanged unchanged unchanged Over $16,000 but not over $22, % unchanged unchanged unchanged unchanged unchanged unchanged unchanged unchanged Over $22,000 but not over $26, % unchanged unchanged unchanged unchanged unchanged unchanged unchanged unchanged Over $26,000 but not over $40, % unchanged unchanged unchanged unchanged Over $40,000 but not over $150, % 6.33% 6.21% 6.09% 5.97% 5.85% 5.73% 5.61% 5.50% Over $150,000 but not over $300, % 6.57% 6.49% 6.41% 6.33% 6.25% 6.17% 6.09% 6% Over $300,000 but not over $2,000, % 6.85% 6.85% 6.85% 6.85% 6.85% 6.85% 6.85% 6.85% Over $2,000, % 6.85% 6.85% 6.85% 6.85% 6.85% 6.85% 6.85% 6.85% The top tax rate, also known as the "Millionaire's Tax" is set to expire on December 31, Head of Household Current Rates (After 2011 and before 2018) New rates per FY Budget Income Rate After 2024 Not over $12,000 4% unchanged unchanged unchanged unchanged unchanged unchanged unchanged unchanged Over $12,000 but not over $16, % unchanged unchanged unchanged unchanged unchanged unchanged unchanged unchanged Over $16,500 but not over $19, % unchanged unchanged unchanged unchanged unchanged unchanged unchanged unchanged Over $19,500 but not over $30, % 5.90% 5.90% 5.90% 5.90% Over $30,000 but not over $100, % 6.33% 6.21% 6.09% 5.97% 5.85% 5.73% 5.61% 5.50% Over $100,000 but not over $250, % 6.57% 6.49% 6.41% 6.33% 6.25% 6.17% 6.09% 6% Over $250,000 but not over $1,500, % 6.85% 6.85% 6.85% 6.85% 6.85% 6.85% 6.85% 6.85% Over $1,500, % 6.85% 6.85% 6.85% 6.85% 6.85% 6.85% 6.85% 6.85% The top tax rate, also known as the "Millionaire's Tax" is set to expire on December 31, Single, Married Filing Seperately, Resident Estates and Trusts Current Rates (after 2011 and before 2018) New rates per FY Budget Income Rate After 2024 Not over $8,000 4% unchanged unchanged unchanged unchanged unchanged unchanged unchanged unchanged Over $8,000 but not over $11, % unchanged unchanged unchanged unchanged unchanged unchanged unchanged unchanged Over $11,000 but not over $13, % unchanged unchanged unchanged unchanged unchanged unchanged unchanged unchanged Over $13,000 but not over $20, % 5.90% 5.90% 5.90% 5.90% Over $20,000 but not over $75, % 6.33% 6.21% 6.09% 5.97% 5.85% 5.73% 5.61% 5.50% Over $75,000 but not over $200, % 6.57% 6.49% 6.41% 6.33% 6.25% 6.17% 6.09% 6% Over $200,000 but not over $1,000, % 6.85% 6.85% 6.85% 6.85% 6.85% 6.85% 6.85% 6.85% Over $1,000, % 6.85% 6.85% 6.85% 6.85% 6.85% 6.85% 6.85% 6.85% The top tax rate, also known as the "Millionaire's Tax" is set to expire on December 31, 2017.