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| Governor Cuomo and Legislative Leaders Announce Agreement on FY 2018 State Budget 04/08/17 11:00am |
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Governor Cuomo and Legislative Leaders Announce Agreement on FY 2018 State Budget Governor Andrew M. Cuomo, Senate Majority Leader John Flanagan, Senate Independent Democratic Conference Leader Jeffrey Klein, and Assembly Speaker Carl Heastie today announced an agreement on the FY 2018 State Budget. The agreement continues the state’s record of fiscal responsibility, holding spending growth to 2 percent while reducing taxes, making smart investments in education, enacting comprehensive criminal justice reforms, creating good-paying jobs, and rebuilding New York’s infrastructure.
Statement from Governor Andrew M. Cuomo: "With this Budget, New York is once again showing what responsible government can achieve. The result is a Budget that advances the core progressive principles that built New York: investing in the middle class, strengthening the economy and creating opportunity for all. "This Budget enacts the Middle Class Recovery Act to continue the Empire State’s upward trajectory and creates a path forward for those striving to get ahead. By making college at our world-class public universities tuition-free, we have established a national model for access to higher education, and achieved another New York first. "For too long, draconian punishments for youthful mistakes have ruined the lives of countless young New Yorkers. By coming together, we reversed this injustice and raised the age of criminal responsibility once and for all so that 16- and 17-year-olds are no longer automatically processed as adults. "This Budget continues the progress we have achieved to improve the lives of New Yorkers, and build a stronger, better Empire State that truly lives up to its motto: Excelsior." Statement from Senate Majority Leader John J. Flanagan: "This agreement will allow us to put in place a complete and final budget for the people of New York. The product of hard work and compromise, our state spending plan meets the needs of middle-class taxpayers and their families and advances key initiatives to make our state more affordable. It rejects new fees and protects one of the biggest and boldest tax cuts in state history, makes the largest ever investment in clean water, helps families better afford the high costs of college and ensures all of our schools have the resources they need to give students a high-quality education. On top of that, the new state budget enacts workers’ compensation reforms to cut costs and help businesses create jobs, fully funds direct care professionals who treat our most vulnerable citizens and makes more than $200 million available to fight and win the battle against heroin and opioid addiction. I congratulate our partners in government, including the Governor, Speaker Heastie and Senator Klein, and thank my colleagues in the Senate Republican Conference for their tireless advocacy, their sound ideas and most of all their patience." Statement from Assembly Speaker Carl E. Heastie: "Throughout these budget negotiations the Assembly Majority has made it clear that our goal is, and always has been, to prioritize the health and well-being of New York’s families and communities. Without critical support for public education, housing and water infrastructure and workable answers to the diverse challenges affecting communities across the state, we cannot succeed. The Assembly Majority is pleased to deliver a budget that keeps the promise to our students by securing significant aid for public schools as well as broadening access to higher education opportunity programs for middle and low income families. This conference is proud that our years-long goal to end the unjust treatment of young offenders in the justice system has finally been realized with this budget, which raises the age of adult criminal responsibility. We have heard the calls of our upstate and suburban communities and delivered greater choice in transportation alternatives with the approval of ridesharing that maintains our commitment to essential labor standards and public safety. This budget also continues our mission to ensure that workers are fairly compensated for their services and delivers funding to bring direct care and support workers closer to the living wage they deserve. The Assembly Majority is proud of this budget and what it means for the future of all New York’s families. These are important and thoughtful investments that will continue to serve the best interests of New Yorkers for generations to come." Statement from Senate Independent Democratic Conference Leader Jeffrey D. Klein: "This is a budget that changes New York for the better. In it we create a historic $10 million immigrant legal aid fund to meet the urgent need of our immigrant communities. This major investment preserves the American Dream for those who, like our relatives, came here to seek it. We Raise the Age right, sending the majority of our 16- and 17-year-olds to Family Court, where they will get the services they need to get their lives back on track. We get our children off of Rikers Island within a year and we send a strong message that we believe in second chances. This budget contains a record increase in education spending, economic development initiatives and important water safety and quality projects. I thank Governor Cuomo, Senator Flanagan and Speaker Heastie for working hard to reach an agreement that benefits all residents in New York State." Reducing Taxes to Record Lows for Middle-Class New Yorkers The Budget continues to lower Personal Income Tax rates for middle-class New Yorkers. With the middle class tax cuts of 2012, rates were lowered from 6.85 percent to 6.45 percent for taxpayers in the $40,000-$150,000 income bracket, and to 6.65 percent in the $150,000-$300,000 income bracket. Under these new reforms, the rate will drop even further this year and will continue to drop all the way to 5.5 percent and 6 percent, respectively, when the cuts are fully phased in. These new lower tax rates will save middle class New Yorkers nearly $6.6 billion in just the first four years, with annual savings reaching $4.2 billion by 2025. As the new rates phase in, they will be the state’s lowest middle class tax rates in more than 70 years. When the tax cuts begin, they will benefit 4.4 million filers, growing to 6 million filers when fully phased in. Investing Record $25.8 Billion in Education The FY 2018 Budget continues the progress made to strengthen educational outcomes and increase access to high-quality learning across New York State. It increases Education Aid by $1.1 billion, including a $700 million increase in Foundation Aid, bringing the new Education Aid total to $25.8 billion or an increase of 4.4 percent. Under Governor Cuomo, education aid has increased by $6.2 billion, or 32 percent, over six years. Establishing the First-in-the-Nation Excelsior Scholarship Program to Provide Tuition-Free College for Families Making up to $125,000 & Investing in E-Books The Budget enacts the Governor’s landmark Excelsior Scholarship program to make college affordable at SUNY and CUNY two- and four-year colleges for working- and middle-class families. The program provides free tuition to families making up to $125,000 per year, and nearly 940,000 New York families are eligible for the program. The new initiative will be phased in over three years, beginning for New Yorkers making up to $100,000 annually in the fall of 2017, increasing to $110,000 in 2018, and reaching $125,000 in 2019. The Excelsior Scholarship is a ‘last mile’ program, which extends the state’s existing generous aid programs, including the nearly $1 billion Tuition Assistance Program and any applicable federal grants, and fills in any remaining gaps to cover the full cost of tuition. New Yorkers must be enrolled in college full-time, averaging 30 credits per year and completing their degree on-time. The program includes built in flexibility, allowing students to pause and restart the program, due to a hardship, or take fewer credits one semester than another. Students must also maintain a grade point average necessary for the successful completion of their coursework. Under the program, New Yorkers will be required to live and work in-state for the number of years they received the Excelsior Scholarship. The Budget also includes a generous Maintenance of Effort to assist in meeting the operational needs of SUNY and CUNY. As the cost of textbooks can be prohibitively expensive, the Budget also invests $8 million to provide open educational resources, including electronic-books, to students at SUNY and CUNY. At the state’s direction, SUNY and CUNY will use this funding to target high-enrollment courses, including general education, to maximize student savings. Under the FY 2018 Budget, a new Enhanced Tuition Award will also enable students attending private not-for-profit colleges to receive financial assistance to complete their college degree. The program provides a maximum award of $3,000, requires private colleges to provide a match and freeze student tuition for the duration of the award – maximizing the financial benefit to the student. The Enacted Budget includes $19 million for the program. Enhancing the Middle Class Child Care Tax Credit The Budget enacts an enhanced middle class child care tax credit that will help more than 200,000 middle-class families make their child care more affordable. The new tax credit would supplement the current New York State Child and Dependent Care Tax Credit and more than double the benefit for families earning between $60,000 and $150,000, bringing the total credit from $169 to $376 per household on average. Protecting New Yorkers from the Soaring Cost of Prescription Drugs Under the FY 2018 Budget, New York is the first state in the nation to cap the growth of prescription drug spending in its Medicaid program, which has grown 25 percent over the past three years. The agreement provides the Department of Health with a range of tools to lower the cost of prescription drugs, including the ability to drive down the cost of certain drugs whose price is high relative to its therapeutic benefits. This unprecedented agreement enables the Medicaid program to allocate more resources for other essential health services and ensures high-quality care across New York State. Combating the Opioid Epidemic In 2016, the Governor signed into law a comprehensive plan to combat the heroin and opioid epidemic in New York State. The FY 2018 Budget builds on this progress by investing over $200 million to support prevention, treatment and recovery programs targeted toward chemical dependency, residential service opportunities, and public awareness and education activities. Raising the Age of Criminal Responsibility The FY 2018 State Budget raises the age of criminal responsibility to 18-years- old and ensures that young people who commit non-violent crimes receive the intervention and evidence-based treatment they need. New York was previously one of only two states in the nation that automatically processed all 16- and 17-year-olds as adults in the criminal justice system, no matter their offense. The new measures will be phased in over time, raising the age of juvenile delinquency from age 16- to 17-years-old beginning on October 1, 2018, and subsequently raising the age of criminal responsibility to 18-years-old on October 1, 2019. Further, young people will no longer be permitted to be housed in adult facilities or jails. Young people under the age of eighteen will no longer be placed or held at Rikers Island in New York City no later than October 1, 2018. They are to be placed in specialized juvenile detention facility certified by the New York City Administration for Children’s Services and the State’s Office of Children and Family Services, and in conjunction with the State’s Commission of Correction and the New York City Department of Corrections. The state will also create a Raise the Age implementation task force, with committee members designated by the Governor. Additionally, individuals who have been crime free for ten years after serving a sentence will be able to apply for the sealing of previous criminal convictions. Delivering $2.5 Billion in Funding to Combat Homelessness and Increase Access to Affordable Housing The FY 2018 Budget continues funding for the state’s $20 billion comprehensive, five-year plan for affordable and supportive housing to ensure New Yorkers who are homeless or at risk of homelessness have safe and secure housing. The Budget includes $2.5 billion in funding to advance the creation of 100,000 new affordable and 6,000 supportive housing units. Enacting "Affordable New York" Housing Program Under the FY 2018 Budget, developers of new residential projects with 300 units or more in certain areas of Manhattan, Brooklyn and Queens will be eligible for a full property tax abatement for 35 years if the project creates a specific number of affordable rental units and meets newly established minimum construction wage requirements. The units must remain affordable for 40 years. For all other affordable developments in New York City, the period of affordability and abatement eligibility would be tied to the number of affordable units. This new program will create an estimated 2,500 new units of affordable housing per year. Cutting Property Taxes and Costs of Local Government The FY 2018 Budget continues the Governor's efforts to relieve the property tax burden and builds on the success of the 2 percent property tax cap. The typical New York homeowner pays 2.5 times more in local property taxes than in state income taxes. The Budget will empower citizens to control the cost of local government by requiring counties to assemble local governments to find efficiencies for real, recurring taxpayer savings. To ensure transparency and an active role for citizens in reducing their tax burden, public hearings and comment periods will be required as part of the development of the shared services plans. Extending Hurrell-Harring Settlement Reforms for Indigent Defendants across New York The provision of quality criminal defense by the government to individuals who cannot otherwise afford counsel is of paramount importance, as the United States Supreme Court ruled in Gideon v. Wainwright. In 2014, the State successfully negotiated an agreement in Hurrell-Harring et al. v. State of New York et al., a lawsuit filed against the state and five counties based upon an alleged failure to provide the necessary level of indigent defense services in those counties, to bring true reform to public defense systems that were failing. To ensure fair and equal representation for all accused individuals, the FY 2018 Budget includes resources to develop the framework through which the state will fund one hundred percent of the costs necessary to extend the reforms provided for in the Hurrell-Harring settlement to all 62 counties in New York. Providing Budget Flexibility to React to Potential Loss of Federal Aid Given the looming threats from Washington, the FY 2018 Budget provides flexibility for the state to adjust spending during the fiscal year to account for a significant loss of federal aid. If federal support is reduced by $850 million or more, the New York State Director of the Budget will develop a plan to make uniform spending reductions. This plan would take effect automatically unless the legislature passes their own plan within 90 days. Delivering Ride Sharing Across New York The FY 2018 Budget authorizes Transportation Network Companies (TNC), such as Lyft and Uber, to operate across New York and creates uniform licensing standards. The Department of Motor Vehicles will have broad oversight of rideshare companies and will ensure compliance with all laws, rules, and regulations required as part of a TNC’s operational license. TNC companies will be required to maintain minimum insurance coverage levels of $1.25 million while a TNC driver is traveling to pick up a passenger and until the drop-off is completed. The state will also establish minimum standards to ensure passenger safety, including mandatory background checks, ongoing monitoring for traffic safety, anti-discrimination protections, and zero-tolerance drug and alcohol policies. The Budget also establishes a statewide task force to study and deliver recommendations on accessibility needs to protect and provide transportation to vulnerable populations. Necessary workers' compensation coverage will also be provided to rideshare drivers through enhancements to the Black Car Fund. Finally, a statewide board will be established to review the impact of this newly authorized industry across the state. Providing $2.5 Billion for Clean Drinking Water for All New Yorkers To ensure that current and future New Yorkers have access to clean water, the Budget initiates the $2.5 billion Clean Water Infrastructure Act. This investment will protect public health, safeguard the environment, and preserve the state’s water resources. These funds will help local governments address water emergencies, pay for local infrastructure construction projects, underwrite land acquisition for source water protection, and investigate and mitigate emerging contaminants in drinking water. These projects will improve the quality and safety of municipal drinking water distribution, filtration systems, and wastewater treatment infrastructure. Enacting Comprehensive Workers’ Compensation Reform The Budget includes meaningful workers' compensation reforms that provide cost savings for businesses and better protections for injured workers. The new reforms ensure that the most significantly injured workers have the right to be considered for lifetime benefits. The reforms will also ensure swift access to hearings for injured workers not receiving benefits, create a clear formulary for prescription drugs, and provide relief for first responders exposed to a traumatic event at work. Concurrent with expanded worker protections, businesses will be achieving overall savings, bringing much needed relief to municipal and private employers. Changes include establishing more definitive limits on caps and updating medical guidelines to reflect advances in modern medicine. Increasing Direct Care Professional Salaries The Budget includes a landmark agreement that will provide New York’s 120,000 direct care professionals with a 6.5 percent raise over the next two years. These increases will help state-funded non-profits that specialize in the care of vulnerable New Yorkers not only recruit and retain employees, but continue to provide the same level of excellent care that have made them the backbone of New York’s developmentally disabled and behavioral health system. |
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