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Cuomo outlines '16 agenda: wants to continue municipal tax cap and local gov't Medicaid relief, end Gap Elimination

Posted 1/13/16

Today, Governor Andrew M. Cuomo delivered his 2016 State of the State and Executive Budget Address at the Empire State Plaza Convention Center in Albany. "The theme of the Governor’s agenda for the …

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Cuomo outlines '16 agenda: wants to continue municipal tax cap and local gov't Medicaid relief, end Gap Elimination

Posted

Today, Governor Andrew M. Cuomo delivered his 2016 State of the State and Executive Budget Address at the Empire State Plaza Convention Center in Albany.

"The theme of the Governor’s agenda for the year is “Built to Lead,” in recognition of New York’s heritage as a standard bearer throughout US history, the significant progress achieved in the state over the past five years, and New York’s inherent capacity to lead the nation in addressing some of today’s most pressing challenges," Cuomo said in a prepared statement summarizing his remarks.

“In five years we have accomplished much for New York State. Yet with all that we’ve done, we are not immune to the problems vexing our nation. From crumbling infrastructure to climate change to the widening gap between the wealthy and everyone else, we too are faced with significant challenges. I know that New York can conquer these issues, however, because we have done it before.”

The governor’s full 2016 policy book is available here

In Cuomo's speech, he said:

• The Executive Budget will continue the disciplined approach to fiscal matters that has defined the governor’s first five budgets, he said. The budget limits the annual growth in State Operating Funds spending to 1.7 percent.

• $300 million for small business tax cut - Small businesses account for 43 percent of all private sector jobs in New York. He wants to continue his push for a series of cuts that he says will save small businesses across the state $3.8 billion by 2021. "To continue growth of the small business sector and help further the expansion of New York’s economy, Governor Cuomo is proposing to cut taxes both for small businesses who pay via the corporate tax and those who pay through personal income taxes. Roughly 1,091,000 small businesses statewide will benefit from this proposal," his statement said.

• Encourage municipal consolidation - The governor has proposed a Municipal Consolidation and Efficiency Competition designed he says is designed to reward local governments that take real steps to make living and working in New York state more affordable. "The competition will challenge counties, cities, towns and villages to develop innovative consolidation action plans yielding significant and permanent property tax reductions. The consolidation partnership that proposes and can implement the greatest permanent reduction in property taxes will receive a $20 million award," Cuomo said.

• Continuing what the governeor calls "successful investments" - To build on the Regional Council and Upstate Revitalization Initiatives, Cuomo has proposed continuing this approach with $950 million in the 2016-17 state budget to support a sixth round of the Regional Council awards and URI runners-up awards. Round VI of the Regional Council initiative will include $750 million to be split competitively among each of the state’s ten regions, and $200 million to fund top projects for the runners up from last year’s URI, Cuomo said. Additionally, he proposes increasing the budget for the "I LOVE NY" campaign by 10 percent in order to continue growing New York’s significant tourism sector – which he claims was responsible for more than 883,000 jobs and an economic impact of $100 billion in 2015.

• Medicaid relief for local governments - The state has eliminated growth in the local share of Medicaid, saving counties $800 million over five years (FY 2015-2019), according to Cuomo. "For the 2015 fiscal year and beyond, the cost of Medicaid to counties subject to the property tax cap will not increase – all growth in the Medicaid program for these counties is being absorbed by the state. The state is also assuming Medicaid administrative responsibilities for counties. This will result in greater efficiencies and help achieve State and Federal health care reform initiatives," Cuomo said.

• Public works reform - Water infrastructure: Invest $250 million in support for drinking water and wastewater infrastructure projects across the state, predominantly in Upstate communities; Roads and bridges: Launch a $22 billion multi-year capital plan to upgrade critical roads, bridges and other vital transportation infrastructure throughout the state, especially in Upstate New York; Broadband: Dramatically expand and improve access to high-speed Internet in communities statewide.

• Schools and education: Last year, New York state enacted a budget that raised funding for public school districts to $23.5 billion – the highest level in state history. That money supported almost 700 school districts, and 2.8 million students in grades pre-kindergarten through twelve. "New York spends more per pupil than any state in the nation, at an average of $19,818, almost double the national average of $10,700," Cuomo said. This year, the governor proposes to "significantly increase" the state’s investment in public schools. His Executive Budget increases school aid by $2.1 billion over the next two school years, including a $991 million (4.3 percent) increase for the 2016-17 school year. This will bring total aid to $24.2 billion in the 2017 school year. "The Governor’s proposal will provide operating aid increases to every school district in the state, and will once again move State-wide education support to record levels," Cuomo said. 

• Extend NYSUNY 2020 - To keep tuition "low and predictable and infuse additional funds into our SUNY ... [system]," the Governor proposes extending the 2011 legislation for an additional five years. Under this rational tuition proposal, SUNY will be able to raise tuition up to $300 annually, provided they are able to demonstrate considerable efforts to reduce spending and that any increase is tied to appropriate inflationary indices. Additional revenue generated by any tuition increase would need to be put in a “lockbox” to support faculty, improve instruction and provide tuition credits for TAP-eligible students. A $300 annual tuition increase would raise $89 million annually for SUNY and $51 million for CUNY. This program will continue to provide $110 million in new capital matching grant funding through Empire State Development for the NYSUNY 2020 and NYCUNY 2020 Challenge Grant Program and will be coupled with an additional projected increase of $400 million in state funding over the next five years.

• End the Gap Elimination Adjustment - Cuomo’s proposed $2.1 billion school aid increase will also allow the state to eliminate the outstanding $434 million Gap Elimination Adjustment over two years, as well as provide an operating increase to every school district in the state, Cuomo said. The governor proposes that over the next two years, the GEA will be entirely eliminated once and for all. "This two-year plan to eliminate the GEA allows school districts a predictable revenue stream to enhance long-term financial planning and support responsible budget practices," Cuomo said.

• Expand pre-kindergarten for three year olds - There are nearly 120,000 students served in the state’s prekindergarten programs, many in full-day spots. Cuomo proposes an additional $22 million investment in pre-kindergarten for three year olds that will support the provision of early childhood education to an additional 2,000-2,500 three year old students. He also proposes an additional $2 million investment to ensure pre-k programs are "high quality."

• The Common Core Task Force - Cuomo appointed a 15-member Task Force to review state standards, curriculum, and assessments. In December, the Task Force issued a 50-plus page report and 21 recommendations based on feedback received from parents, teachers, students, and other education experts across 12 public engagement sessions, as well as on over 2,000 comments and conversations with stakeholders. "After careful review, the Governor accepts all 21 recommendations of the Common Core Task Force report," Cuomo's office said. "The Task Force proposed dramatic reforms including reduced testing, increased parental participation and empowered local districts. These reforms were essential because we saw parents losing faith in the system. Roughly 20% of students opted out of exams and in some districts it was as much as 90%. Simply put, the education system fails without parental trust. To restore the trust we said we would correct the State Education Department’s Common Core curriculum implementation mistakes and testing regimen. Time has shown that this is the right decision and the Governor urges the State Education Department to do it right this time and is fully available to assist in and monitor that effort."

• $200 supplies credit for teachers - Teachers who purchase instructional materials or other supplies for their classrooms could be eligible for $10 million in tax credits to reimburse teachers up to $200 for their purchases of classroom materials and supplies.

• Facilitate a coal free New York by 2020 - To achieve the goal of reducing carbon dioxide emissions from the energy sector 40 percent by 2030, Cuomo seeks to close or repower the three remaining coal burning power plants to cleaner fuel sources by 2020. He says he will direct the Department of Public Service and the DEC to work with the New York Independent System Operator to develop a regulatory framework that will ensure system reliability while facilitating repowering to cleaner fuel or closure no later than 2020. He says he will draw upon the state’s $19 million mitigation fund to help offset financial losses associated with the retirement of aging or obsolete power plants.  

• Allocate $40 Million to establish permanent law enforcement presence statewide to combat terrorism - "To respond to the need for increased protection of its citizens in the wake of heightened terrorist threats, the Governor initiated a counter terrorism surge in the New York City metro area in 2014 that provided an increased State Police, MTA Police, and National Guard presence. The State also launched the “See Something, Send Something” mobile application in 2015 that allows New Yorkers to report suspicious activity," Cuomo said. "To protect against the increased threat to transit hubs and critical infrastructure, the State will establish a permanent State Police presence in New York City. These specially-trained, uniformed State Troopers will partner with dozens of investigators to strengthen the law enforcement presence in and around New York City. Moreover, the Governor has called for a total investment of $40 million, which will expand law enforcement presence to protect critical infrastructure throughout the State."

• Provide enhanced training and equipment to state troopers - "Recent terror attacks have revealed a trend towards coordinated strikes using military-style assault weapons, as well as home-grown extremists committing lone-wolf attacks. These attacks are easier to carry out on American soil and can occur anywhere within New York State. This new normal of terrorism requires an expanded approach to the State’s counter terrorism efforts," Cuomo said. "Therefore the Governor will also invest $4 million to prepare New York State Troopers to respond to this emerging threat, both in New York City and throughout the State. This investment will provide high-powered rifles, body armor and ballistic helmets to all on-duty uniformed troopers, along with the necessary training to prepare them to respond to this evolving threat of terrorism."

Consolidate the Office of Counter Terrorism with the State Police - In 2015, the Governor announced that former New York City Police Department Commissioner Ray Kelly would conduct an in depth assessment of the State’s existing counter terrorism preparedness and prevention efforts. Commissioner Kelly has proposed a preliminary recommendation for the state to consolidate the operational components of the Office of Counter Terrorism in DHSES within the New York State Police’s Office of Counter Terrorism which the Governor has accepted," Cuomo said. "This shift will increase the efficiency of the State’s counter terrorism functions by consolidating all intelligence and analysis resources within the New York State Intelligence Center, under the singular command of the New York State Police. The enhanced unit will monitor all known threats and identify emerging targets using the latest technology and techniques. This effort will continue to support federal, state, local, tribal and private sector efforts to prevent, protect against and prepare for acts and threats of terrorism."

Close the "terror gap" - "Today, states cannot use the federal government’s Terror Watch List to determine who may be licensed to own or permitted to buy a firearm and Washington D.C. can’t agree on the use of intelligence information concerning terrorists in gun background checks. The Governor calls upon the federal government to officially add the U.S. Terror Watch List to the criteria it uses for federal background checks in New York State. This would prevent known or suspected terrorists from legally purchasing guns and would cross-check the terror watch list with a National Instant Criminal Background Check System request, effectively closing the terror gap within the state and barring individuals on federal terror watch lists from legally arming themselves," Cuomo said.

• Raise the minimum wage - "Governor Cuomo has proposed making New York the first state in the nation to enact a $15 minimum wage for all workers. Raising the minimum wage to $15 an hour for all industries directly benefits 2.3 million workers in New York State, about a quarter of the total workforce," Cuomo said. Previously, as a result of the Governor’s efforts, New York has begun moving toward a $15 minimum wage for fast food employees, public sector workers, and SUNY employees – in total amounting to roughly a quarter of a million workers in New York State. More information is available here."

Provide paid family leave for New York workers - Federal law currently provides only for unpaid family leave, and creates a dilemma for those caught between the need to care for a sick relative or newborn and the pressure to return to work and earn money. Moreover, federal unpaid family leave only covers approximately 60 percent of all workers. To help workers care for their families while protecting their earnings and job security, the Governor proposes a new paid family leave program for New York workers. New York State’s Paid Family Leave Program will provide twelve weeks of job-protected, employee-funded leave to be used for bonding with a new child or caring for a sick relative," Cuomo said. "Statewide paid family leave will particularly benefit low-income workers who often lack benefits or job security, and for whom access to any leave, even unpaid, is often not available or cost prohibitive. Paid family leave also has the potential to serve as a great equalizer for women. This is so because in many instances, women who leave the workforce to care for a newborn not only forfeit their existing salaries in the short-term, but also suffer diminished future earnings and career trajectories in the long term. Establishing paid family leave marks a pivotal next step in the pursuit of equality and dignity in both the workplace and the home."

Increase Opportunity for minority and woman-owned businesses - "In 2014, Governor Cuomo established a goal of 30 percent for New York’s MWBE state contract utilization – the highest goal of any state in the nation. However, under state law, that goal only applies to contracts issued by state agencies and authorities; it does not apply to state funding given to localities such as cities, counties, towns, villages and school districts, which amounts to approximately $65 billion annually. This year, the Governor will advance legislation addressing this disconnect by expanding the MWBE goal setting to localities and entities that subcontract with those localities. Doing so will leverage the largest pool of state funding in history to combat systemic discrimination and create new opportunities for MWBE participation," Cuomo said.

• Close the "LLC loophole" and increase campaign disclosure - "In order to preserve open, free and fair elections, Governor Cuomo is proposing to close the LLC loophole, which allows wealthy individuals and corporations to use Limited Liability Companies to avoid New York’s campaign donation limits. Additionally, to provide greater transparency in campaign contributions, the Governor proposes that candidates disclose campaign contributions to the Board of Elections every 60 days, instead of the current twice yearly requirement," Cuomo said.

• Limit outside income for legislators - "The Legislature’s part-time structure allows professionals from diverse industries and backgrounds to serve the public. This offers the distinct advantage of legislators who are not career politicians but, instead, have a diverse set of interests and experiences. To strike the right balance, the Governor proposes that New York State adopt limits on outside income for legislators akin to the limits our federal government places on legislators’ outside income. The proposal will limit State legislators’ outside income to 15 percent of their base salary," Cuomo said.