Details of NY state budget plan

WNYT-TV
Created: April 07, 2021 04:33 PM

Courtesy: Gov. Cuomo's Office:

GOVERNOR CUOMO ANNOUNCES HIGHLIGHTS OF FY 2022 BUDGET TO REIMAGINE, REBUILD AND RENEW NEW YORK

 

$311 Billion Infrastructure Plan - Largest in the Nation & Most Expansive in State's History - Will Create Thousands of Jobs Across the State

 

First-in-the-Nation Program to Make Broadband Internet Affordable - $15 Broadband Plans Must Be Offered to Low-Income Families

 

Enhances Public Safety by Authorizing the Withholding of 50 Percent of State and Federal Funds from Jurisdictions that Fail to Produce a Police Reform Plan; Requires the Attorney General to Appoint a Monitor to Ensure Safe Policing

 

Directs $2.3 Billion in Federal Child Care Resources to Expand Availability, Quality and Affordability of Child Care Across the State; Enacts Employer Child Care Credits

 

$29 Billion in Public and Private Green Economy Investments

 

Establishes Prevailing Wage & Buy American Requirement

 

Protects Renters by Creating $2.4 Billion Rent Relief Program

 

Enhances Quality of Care at Nursing Homes with Patient-Centered Reforms

 

Provides $1 Billion in Small Business and Arts Relief and Recovery Assistance

 

Enacts Middle Class Property Tax Credit and Continues Middle Class Tax Cut; Expected to Save 4.8 Million New Yorkers Over $2.2 Billion This Year

 

$29.5 Billion School Aid, 11% Increase, Record Funding

 

Governor Led National Effort for State and Local Federal Funding with New York State Receiving $12.6 Billion; Budget Closes Remaining Gap; Adds $3.5 Billion in Tax Revenue and Invests in COVID Response and Recovery

 

 

Governor Andrew M. Cuomo today announced highlights of the FY 2022 Enacted Budget to reimagine, rebuild and renew New York in the wake of the ongoing COVID-19 pandemic.

 

The Budget supports the Governor's $311 billion infrastructure plan - the largest in the nation and the most expansive in State's history - that will create thousands of jobs across the State.

 

The Budget establishes a first-in-the-nation program to provide affordable internet by requiring internet service providers to offer an affordable $15 per month high-speed internet plan to qualified low-income households.

 

The Budget enhances public safety by authorizing the withholding of up to 50 percent of State and Federal funds from jurisdictions that fail to produce a police reform plan and comply with the Governor's Executive order. The Governor may require that the Attorney General appoint a monitor over the police force until the plan is adopted.

 

The Budget directs $2.3 billion in federal child care resources to expand availability, quality and affordability of child care across the state, and enhances the Employer Provided Child Care Credit to provide meaningful incentives to employers to help them provide child care to their employees.

 

The Budget supports $29 billion in public and private green economy investments to create 12,400 megawatts of green energy - enough to power 6 million homes - helping to fulfill the goals of New York's Climate Leadership and Community Protection Act and also spur the COVID economic recovery. The investments include the largest offshore wind program in the nation, plans to make New York a global wind energy manufacturing powerhouse, constructing a green energy transmission superhighway, a public-private partnership to build nearly 100 renewable energy projects and supporting transit agencies' transition to electric busses.

 

The Budget ensures that New York uses Buy American principles in manufacturing of renewable components. The Budget also requires prevailing wage for construction labor peace agreements for operations and manufacturing.

 

The Budget ensures access to fair and safe housing and protects renters by establishing a $2.4 billion rent relief program using Federal and State funds.

 

The Enacted Budget includes comprehensive nursing home reform legislation to help ensure facilities prioritize patients over profits, establishing minimum thresholds for nursing home spending on direct resident care and staffing, and investing $32 million annually to implement the reforms, while capping profits and performing related party transactions to drive funding to where it matters most, the patients.

 

The Budget enacts small business and arts relief and recovery assistance, a robust $1 billion relief package for small businesses, arts, entertainment and restaurant relief to help them recover from the impacts of the pandemic. It includes $865 million in grants and $139 million in tax credits.

 

The Budget also continues the phase-in of the middle class tax cut, which is expected to save 4.8 million New Yorkers over $2.2 billion this year.

 

From the beginning of the pandemic, Governor Cuomo led the national effort to secure Federal funding for state and local governments, with New York State receiving $12.6 billion in aid to help offset devastating revenue losses caused entirely by the pandemic. With this Federal funding and additional revenues, including $3.5 billion in new tax revenue that rises to $4.3 billion in FY 2023, the Enacted Budget closes the deficit and invests in the ongoing response to the pandemic and recovery efforts.

  

"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."

 

Fiscal Highlights of the FY 2022 Enacted Budget:

  • State Operating Funds spending is $111 billion
  • All Funds spending $212 billion for FY 2022
  • Applies $5.5 billion in federal aid
  • Provides $29.5 billion in School Aid, a $3 billion, 11% increase.
  • Provides $7.7 billion in State support for higher education in New York

 

 

2022 REIMAGINE | REBUILD | RENEW ENACTED BUDGET HIGHLIGHTS 

 

 

$311 Billion Infrastructure Plan: New York's $311 billion infrastructure plan includes the Governor's $211 billion 2020-24 plan and his $100 billion 2015-2019 plan. The evolving plan increased by $36 billion in the budget with the inclusion of new, key elements of the Midtown West Redevelopment of New York City beginning with Penn Station, Belmont Station Redevelopment, a $3 billion environmental bond act, transportation programs, and additional supportive, affordable, and public housing support, along with incremental adds to existing capital programs.  

 

First-in-the-Nation Affordable Internet for Low-Income Families: The FY 2022 Enacted Budget includes first-in-the-nation legislation requiring internet service providers to offer an affordable $15 per month high-speed internet plan to qualifying low-income households. The State will also require providers to advertise this plan to ensure programs reach underserved populations across the State. To further bridge the gap, the State has partnered with Schmidt Futures and the Ford Foundation to launch ConnectED NY, an emergency fund to provide approximately 50,000 students in economically disadvantaged school districts with free internet access through June 2022. 

 

Police Reform Plans: The FY 2022 Enacted Budget authorizes the withholding of up to 50 percent of state and federal funds from jurisdictions that fail to produce a police reform plan and comply with the Governor's Executive Order 203, the New York State Police Reform and Reinvention Collaborative. It also requires the Attorney General to install a monitor until the jurisdiction is compliant, if the Governor directs.

 

Expand Child Care Availability and Affordability: The FY 2022 Enacted Budget directs $2.3 billion in Federal child care resources to expand the availability, quality and affordability of child care. Increases in child care subsidies will expand access, co-pays would be lowered to not more than 10% of family income above the poverty level and essential workers would receive child care tuition support. Child care providers would receive $1.3 billion in stabilization grants to support expenses, as well as additional funds for cleaning and safety. Further investments would be made to increase capacity in child care "deserts" and help parents find the child care provider that's right for them.

 

Enact Employer Child Care Credits: The FY 2022 Enacted Budget enhances the Excelsior Jobs Program and Employer Provided Child Care Credit, providing meaningful incentives to employers to help them provide much needed child care to their employees. The Excelsior Jobs Program is enhanced to allow for an expanded up to five percent Investment Tax Credit component and a credit up to six percent of ongoing net child care expenditures provided by the credit recipient. The Employer Provided Child Care Credit is also enhanced by doubling the current credit percentages to 50 percent of qualified child care expenditures and 20 percent of qualified child care resource and referral expenditures while increasing the per taxpayer cap from $150,000 to $500,000.

 

$29 Billion in Public and Private Green Economy Investments: Under Governor Cuomo's leadership, New York will embark on an ambitious Green Energy program that will spur more than $29 billion in public and private investment across the state and create 12,400 megawatts of green energy - enough to power 6 million homes. These investments will not only shift the state to a carbon neutral economy, fulfilling the goals of New York's Climate Leadership and Community Protection Act, but also spur the COVID economic recovery. The investments include the largest offshore wind program in the nation, plans to make New York a global wind energy manufacturing powerhouse, constructing a green energy transmission superhighway, a public-private partnership to build nearly 100 renewable energy projects and supporting transit agencies' transition to electric busses.

 

Provide $2.4 Billion to Protect Renters: The FY 2022 Enacted Budget creates a $2.4 billion Emergency Rental Assistance Program (ERAP) to ensure New Yorkers can make rent and remain stable in their homes. The program will support households in rental arrears that have experienced financial hardship, are at risk of homelessness or housing instability and that earn less than 80 percent of area median income. The program would prioritize those with the lowest incomes, the unemployed and other vulnerable populations. Renters in the program will also be eligible to receive relief for utility arrears. The program is funded by $2.3 billion in Federal resources and $100 million of State resources to supplement the core program and target those facing hardship that may not otherwise be eligible. The program will be structured to enable coordinated efforts between the State and the local governments that opted to receive funds directly - leveraging resources, gaining efficiencies and preventing fraud.

 

Enhancing Nursing Home Quality of Care: The Enacted Budget includes comprehensive nursing home reform legislation to help ensure facilities are prioritizing patient care over profits.  These reforms establish minimum thresholds for nursing home spending of 70 percent of revenues on direct resident care and 40 percent of revenues on resident-facing staffing, capping profits at five percent, and targeting unscrupulous related party transactions. Excess revenues recouped by the State will be deposited into the existing nursing home quality pool for further investments for nursing homes to meet high quality standards. Now, more than ever, it is important that nursing homes are staffed to provide high quality care and safety for their residents. These initiatives will have a positive impact on nursing home residents and staff, delivering the quality of care needed for the most vulnerable New Yorkers in a safe environment. 

 

$1 Billion Small Business and Arts Relief and Recovery Assistance: The FY 2022 Enacted Budget includes a robust $1 Billion small business, arts, entertainment and restaurant relief package to help businesses and other organizations recover from the impacts of the pandemic:

  • COVID-19 Pandemic Small Business Recovery Grant Program: Provides $800 million in grant funding for small businesses including for-profit arts and cultural institutions impacted by the COVID-19 pandemic.
  • New York Restaurant Resiliency Grant Program: $25 million in grant funding to support restaurants that provide meals to distressed and under-represented communities.
  • Arts and Cultural Organization Recovery Grant Program: $40 million to provide grants through the New York State Council on the Arts to eligible arts and cultural nonprofit organizations to assist in the recovery from the COVID-19 pandemic.
  • Restaurant Return-To-Work Tax Credit: Provides up to $35 million in tax credits to support restaurants hard hit by the pandemic through 2021.
  • New York City Musical and Theatrical Production Tax Credit: Provides up to $100 million in tax credits to jump start the industry and support tourism activity in the City.
  • Extend and Enhance the Musical and Theatrical Production Credit for Four Years: In order to support musical and theatrical productions that occur in the State but outside of New York City, the Budget extends this credit for four years through 2025 and increases it by $4 million to $8 million.

 

Continuing Middle Class Tax Cuts: The FY 2022 Enacted Budget continues to lower Personal Income Tax rates for middle-class New Yorkers. In 2021, the fourth year of the multi-year tax cuts enacted in 2016, income tax rates have been lowered from 6.09% to 5.97% for taxpayers filing jointly in the $43,000-$161,550 income bracket, and from 6.41% to 6.33% in the $161,550-$323,200 income bracket. These cuts are expected to save 4.8 million New Yorkers over $2.2 billion this year. 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.

 

Enact the Real Property Tax Relief Credit: The Budget provides a personal income tax credit for New York resident homeowners with incomes up to $250,000 if their total property tax exceeds a fixed percentage of their income. This framework will target New York families with the highest property tax to income burden. The calculation of this credit is capped at $350 per STAR-eligible household, while also utilizing a $250 credit minimum to further target homeowners impacted the most by high property taxes. It is expected that claims will average about $340. Qualified homeowners will be able to claim this new Property Tax Relief credit for taxable years 2021, 2022, and 2023. 

 

Striking a Balance on Revenue

 

The FY 2022 Enacted Budget includes new revenue resources that provide the revenues needed to make the investments that will support New York's ongoing response to the COVID-19 pandemic and New York's recovery from it, including:

  • Hard Won Federal Support: The Budget deploys the first $5.5 billion of the $12.6 billion provided for in the federal American Recuse Plan Act 2021. These funds are integrated throughout the budget in accordance with available federal guidelines. Remaining funds will be used in future budgets over the four years that the funding is available.
  • Secured Federal Support for Local Governments: The Budget includes appropriation authority for local governments to receive Federal support that Governor Cuomo fought tirelessly for. The historic package of $10.8 billion in Federal aid for local governments is a lifeline to localities, helping to support essential workers and government employees, assist the vaccination efforts, boost local economies and support the network of local government services that New Yorkers depend on.
  • Personal Income Tax Surcharge: The Enacted Budget implements a surcharge on high earners through Tax Year 2027 that sets a top rate of 10.9% for all filers earning more than $25 million. The surcharge raises $2.8 billion in FY 2022, rising to $3.3 billion in FY 2023.
  • Corporate Franchise Tax Rates: The Enacted Budget implements a surcharge on corporate tax rate that increases the business income tax rate from 6.5% to 7.25% for three years through tax year 2023 for taxpayers with business income greater than $5 million. It also increases the capital base method of liability estimation to 0.1875% from the 0.025% rate in effect last year.   The capital base method increase continue to exempt qualified manufacturers, qualified emerging technology companies, and cooperative housing corporations. These changes raise $750 million in FY 2022 and $1 billion in FY 2023.
  • Mobile Sports Wagering: The FY 2022 Enacted Budget authorizes mobile sports wagering. Once fully phased in, legalization will provide more than $500 million in much needed revenue for the State to help rebuild from COVID-19 and grow what could be the largest sports wagering market in the U.S. into a profitable industry long-term. Under the legislation, the state will issue a Request for Applications and must select at least two platform providers who must work with a total of at least four operators or skins. Once fully phased in, the program will provide $5 million annually to youth sports, and $6 million to combat problem gambling, doubling the resources currently available. The remainder of this new revenue will be dedicated to education. 

 

Education

 

$29.5 Billion in School Aid: The FY 2022 Enacted Budget provides $29.5 billion in State funding to school districts for the 2021-22 school year through School Aid, the highest level of State aid ever, supporting the operational costs of school districts that educate 2.5 million students statewide. This investment represents an increase of $3.0 billion (11.3 percent) compared to the 2020-21 school year, including a $1.4 billion (7.6 percent) Foundation Aid increase. Approximately 75 percent of this increase is targeted to high-need school districts 

 

$13 Billion in Federal Aid to Public Schools: The FY 2022 Enacted Budget programs $13 billion of federal Elementary and Secondary School Emergency Relief and Governor's Emergency Education Relief funds to public schools. This funding, available for use over multiple years, will help schools safely reopen for in-person instruction, address learning loss, and respond to students' academic, social, and emotional needs due to the disruptions of the COVID-19 pandemic. The Budget allocates $629 million of these funds to school districts as targeted grants to support efforts to address learning loss through activities such as summer enrichment and comprehensive after-school programs. In addition, the Budget uses $105 million of federal funds to expand access to full-day prekindergarten programs for four-year-old children in school districts statewide in the 2021-22 school year.

 

$500 Million in Emergency Federal Assistance to Nonpublic Schools: The FY 2022 Enacted Budget includes $500 million of federal funding for emergency assistance to nonpublic schools, prioritizing schools that serve high proportions of low-income children and have been most severely impacted by the COVID-19 pandemic. These funds will support pandemic-related costs such as personal protective equipment, educational technology, and redeveloping instructional plans for remote or hybrid learning and to address learning loss.

 

Authorize Aid for Pandemic-Related School District Transportation Costs: Under the FY 2022 Enacted Budget, school districts will be reimbursed for the cost of delivering school meals and instructional materials during pandemic-related school closures in spring 2020 and for the costs of keeping transportation employees and contractors on standby during the initial short-term closures prior to the announcement in May 2020 that school buildings would be closed for the remainder of the 2019-20 school year

 

 

Defeating COVID and Strengthening Health Care Delivery

 

Telehealth: The COVID-19 pandemic has transformed the healthcare delivery system as methods for accessing care have expanded. Accordingly, the State enacted a comprehensive package of telehealth reforms that will increase access to telehealth services. These include:

  • In the Enacted Budget, these include: increasing access to services through comprehensive reform by allowing certain unlicensed staff (e.g. Credentialed Alcoholism and Substance Abuse Counselors) to deliver substance use disorder services; expanding covered telehealth providers; eliminating obsolete location requirements..
  • The Reimagine New York Build Back Better initiative will include a $3 million capital grant program matching state and private funding to support telehealth infrastructure needs of rural providers and those serving vulnerable populations

 

Expanding Nation-Leading COVID-19 Diagnostic Capacity:  The FY 2022 Enacted Budget will continue to support the expansion of the State's world-leading testing program, performing over 200,000 COVID-19 tests daily, on average, to identify disease and mitigate community spread. This includes leveraging the research expertise of Wadsworth laboratories, which was the first public laboratory in the United States to have a non-Centers for Disease Control COVID-19 test approved by the Food and Drug Administration. The State will also continue to operate a network of 22 regionally located drive-through and walk-in testing locations available to all New Yorkers completely free of charge, and will establish a network of rapid testing locations by partnering with testing companies to allow business and entertainment centers to safely re-open.

 

Strengthening Public Outreach for Communities Disproportionately Affected by the COVID-19 Pandemic: The FY 2022 Enacted Budget includes $15 million to strengthen communication, expand public education and enhance ongoing outreach efforts for communities that have been disproportionately affected by the COVID-19 pandemic. A portion of these funds will be awarded directly to community-based organizations across the state to increase COVID-19 awareness and promote vaccine confidence in the Latino community. Remaining funds will be used for the development of a vaccine awareness media campaign and enhancements to the COVID-19 hotline, which has served as an important source of information to the public with questions or concerns regarding the COVID-19 pandemic.

 

Launch a New York State Infectious Diseases Resiliency Commercialization Fund: As part of Governor Cuomo's Life Science Initiative, Empire State Development will create a new $40 million New York State Infectious Diseases Resiliency Commercialization Fund led by Empire State Development and advised by the New York State Department of Health and other private experts to capitalize on New York's substantial research and development assets and expertise in life sciences, biotechnology and biodefense. The fund will focus on accelerating the growth of companies to fast track the development of innovations that address emerging infectious diseases, public health threats and support economic growth.

 

Continue COVID Response and Implementation of Vaccine Distribution: The FY 2022 Enacted Budget will support the implementation of a statewide COVID-19 vaccination program that will be available to all New Yorkers within the year, ensuring a fair and equitable distribution to vulnerable and underserved communities within all regions of the state. The vaccine program will cover nearly 20 million residents at no cost, driving New York towards becoming the nation's first COVID-safe state and accelerating the State's re-opening effort.

 

Create the New York Public Health Corps: The FY 2022 Enacted Budget supports the New York Public Health Corps, which will assist in supporting COVID-19 vaccination and pandemic response operations and establishing a best-in-the-nation emergency response public health capacity that lasts beyond the COVID-19 pandemic. Fellows selected for the New York Public Health Corps will include students in undergraduate and graduate public health programs, nursing schools and medical and pharmaceutical schools, recent graduates, retired medical professionals, volunteer first responders and other New Yorkers who will receive an intensive public health training curriculum developed by Cornell University. After the COVID vaccination program is completed, New York will leverage this Public Health Corps model workforce by continuing to recruit and train public health professionals to be available and prepared to serve the State in any future public health crisis.

 

Eliminate Health Care Premiums: The Enacted Budget eliminates premiums for Essential Plan coverage for more than 400,000 New Yorkers earning between $39,300 and $52,400 for a family of four and expands coverage to include dental and vision by eliminating dental and vision premiums and cost-sharing for Essential Plan 1 and Plan 2 members currently paying out-of-pocket.

 

Enhancing Social Service Crisis Intervention: The FY 2022 Enacted Budget includes $10 million to support of social service crisis intervention programs and providers disproportionately affected by the COVID-19 Pandemic. These funds will provide much needed financial relief to social service crisis intervention providers who have continued to maintain a quality of care despite the financial burden imposed by the COVID-19 pandemic.

 

Improving Data Collection Efforts for the Public Health Needs of Asian and Pacific Islander Americans: The FY 2022 Enacted Budget provides support to organizations with the capability of collecting health care related demographic information, specifically for New York State's Asian and Pacific Islander American populations. The information collected as part of this Data Disaggregation program will be used to identify the specific health care needs of the Asian and Pacific Islander American populations and address shortfalls in the State's healthcare system in effectively serving these portions of the population.

 

Enhancing Access to Health Care Services for Holocaust Survivors: The FY 2022 Enacted Budget provides $1 million in additional support for the Holocaust Survivors Initiative. These funds will be used to increase access to health care related case management services for those who suffered in the Holocaust. Case Management services include, but are not limited to, mental health services, trauma informed care, crisis prevention, legal services and entitlement counseling, emergency financial assistance for food, housing, prescriptions, medical and dental care, socialization programs, training and support for caregivers and home health aides working with survivors and end of life care including hospice and ethical wills.

 

Establish Urgent Care Centers for mental health and addiction services:  The Budget authorizes the launch of Urgent Care Centers for mental health and addiction services. On average, more than 100,000 individuals per year benefit from crisis intervention services. These centers will be open 24/7/365 and accept all admissions without referral, including direct drop-offs by law enforcement and other first responders. This effort will streamline stabilization and reintegration for individuals in crisis.   

 

Human Services Cost of Living Adjustment (COLA): The FY 2022 Budget includes $46.2 million to provide a 1 percent COLA to not-for-profits licensed, certified, or otherwise authorized by OPWDD, OMH, and OASAS. These additional resources will support the community-based programs that provide essential services and supports to people with developmental disabilities, mental illness and/or substance use disorder. The Budget also provides $5.6 million for a 1 percent COLA increase for other human services agencies, including SOFA, OTDA, and OCFS.

 

Post-Partum Eligibility: The Enacted Budget extends coverage for pregnant women between 200% and 223% of the Federal Poverty limit from 60 days after pregnancy to one year. Postpartum persons will maintain 60 days of coverage under Medicaid, and on day 61 they will get coverage under a qualified health plan. This will eliminate the benefit cliff for persons with incomes too high to qualify for Essential Plan coverage

 

Delay Transition of Medicaid Pharmacy Benefit: The FY 2021 Enacted Budget transitioned the Medicaid pharmacy benefit from Managed Care to fee for service to increase transparency, maximize rebates and reduce administrative costs. Savings were reinvested to 340B entit


Copyright 2021 - WNYT-TV, LLC A Hubbard Broadcasting Company