New York State Senate Majority Finance Committee / Counsel Staff Analysis of the FY 2019 Executive Budget
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New York State Senate Majority Finance Committee / Counsel Staff Analysis of the FY 2019 Executive Budget Senator John J. Flanagan Temporary President of the Senate Majority Coalition Leader Senator Jeffrey D. Klein Independent Democratic Conference Leader Majority Coalition Leader Senator Catharine M. Young Chair of the Finance Committee Senator Diane J. Savino Vice-Chair of the Finance Committee Shawn MacKinnon Secretary to the Finance Committee David C. Previte Counsel to the Majority JANUARY 2018 THE SENATE STATE OF NEW YORK CHAIR ALBANY OFFICE FINANCE ROOM 428 STATE CAPITOL ALBANY, NEW YORK 12247 STANDING COMMITTEES (518) 455-3563 HOUSING FAX: (518) 426-6905 TRANSPORTATION DISTRICT OFFICE WESTGATE PLAZA 700 W. STATE STREET OLEAN, NEW YORK 14760 CATHARINE M. YOUNG (716) 372-4901 SENATOR FAX: (716) 372-5740 1-800-707-0058 57TH DISTRICT Report of the Senate Finance Committee STAFF ANALYSIS OF THE FY 2019 EXECUTIVE BUDGET As Prepared by the Senate Majority Coalition Finance Committee / Counsel Staff Shawn MacKinnon David Previte Secretary, Finance Committee Counsel to the Majority Thomas Havel, Deputy Secretary, Senate Finance Committee James Curran, First Assistant Counsel, Senate Counsel Program Finance Staff Counsel/Program Staff Nicholas Audi Kevin Gannon Carmen J. Barber Barbara McRedmond Brendan Boyle Maria LoGiudice Nicola Coleman Joseph Messina Allison Bradley Philip Manuli Ken Connolly Paul Midey Sharon Carpinello Lauren Melendez Robert Farley Charles Pensabene John DiVito Mark Nachbar Jonathan Federman Anthony Piscitelli Jeffrey DeGironimo Steven Rodway Joseph Foskett Michael Pottetti Peter Drao Dave Thoman Colleen Glavin Jillian Sauer James Eagan Charles Vaas Jonathan Graves Nicole Stewart Benjamin Eddy Allison Gold Joanne Fogarty Dave Gruenberg Peter Foland Lisa Harris Nicole Fosco Maureen Harris Benjamin Kosinski Director, Council on Health Care Financing Thomas Wickham Publication Editor Jason P. Clark TABLE OF CONTENTS SECTION ONE: HIGHLIGHTS OF THE FY 2019 BUDGET OVERVIEW OF THE FY 19 BUDGET – FINANCIAL PLAN TABLES ................................................. 1 SUMMARY OF AGENCY SPENDING Education ..................................................................................................................... 23 Higher Education ......................................................................................................... 34 Health – Medicaid ........................................................................................................ 43 Transportation .............................................................................................................. 70 Environmental Conservation, Agriculture and Housing .............................................. 76 Public Protection .......................................................................................................... 91 Economic Development .............................................................................................. 103 Mental Hygiene .......................................................................................................... 112 Human Services .......................................................................................................... 122 General Government and Local Government Assistance ........................................... 136 Receipts, Taxes and Fees ............................................................................................ 152 SECTION TWO: SENATE ISSUES IN FOCUS Middle Class Income Tax Cut / Child and Dependant Care Credit .......................................................... 159 New York State Property Tax Relief ...................................................................................................... 161 New York City Property Tax Growth ....................................................................................................... 168 Foundation Aid ......................................................................................................................................... 172 Charter Schools ......................................................................................................................................... 176 College Affordability ................................................................................................................................ 179 State Infrastructure and Settlement Funds ............................................................................................... 182 Transportation Capital Programs .............................................................................................................. 187 Congestion Pricing .................................................................................................................................... 192 Heroin and Opiod Crisis ........................................................................................................................... 195 Executive Criminal Justice Proposals ....................................................................................................... 205 Executive Proposal on Ethics and other Governmental Operations ......................................................... 207 State Spending Cap ................................................................................................................................... 216 Minimum Wage - $15 per hour (Update) ................................................................................................. 218 Paid Family Leave .................................................................................................................................... 225 Workforce Update ..................................................................................................................................... 229 Federal Tax Changes ................................................................................................................................. 232 Water Quality and Flood Funding ............................................................................................................ 236 Executive Workforce Development Proposal ........................................................................................... 239 Energy and Environment .......................................................................................................................... 241 Local Government Impact Shared Services and Continued Savings to Counties ..................................... 243 SECTION THREE: SUMMARY OF ARTICLE VII LEGISTLATION AND APPENDICES Executive Budget Public Hearing Schedule ............................................................................................. 247 Summary of Article VII Bills.................................................................................................................... 248 SECTION ONE HIGHLIGHTS OF THE EXECUTIVE BUDGET OVERVIEW The State Senate Majority has continued to work the Financial Plan projects a four-year General in a bi-partisan way to protect the hard working Fund surplus of $1.367 billion. taxpayers of the State of New York by enacting State budgets that reflect progress in making New The Executive Budget revenue outlook continues York more affordable, creating more opportunity to reflect the recent uncertainty and atypical and increasing security. Ultimately, these goals receipts patterns the State has been experiencing, can be achieved by controlling taxes and and the Executive has again adjusted revenue spending, creating jobs, building a better business projections. In comparison to the FY 2018 Mid- environment, and investing in critically important Year update, tax receipts projections have been areas like public safety, education, health care and revised upward by $1.9 billion, buoyed by a the environment. strong surge in tax prepayments. For FY 2019, the Executive is anticipating an overall decline of The Executive Budget extends for the eighth 2 percent in State tax receipts, driven by $1.9 straight year proposed spending restraints billion in personal income tax prepayments through a self imposed two percent spending cap shifted into the prior fiscal year, which is partially on State funds that has to date saved the taxpayers offset by expected increased business and of New York over $41 billion. While continuing sales/use tax collections. to commit to this fiscal restraint the Executive has proposed significant investments in education, The FY 2019 Executive Budget proposes to health and safety, as well as infrastructure continue language within the appropriation bills improvements. The Executive has proposed a providing the Executive with broad powers to number of gap closing actions to eliminate a $4.4 reduce certain local assistance payments by a billion dollar deficit for FY 2019. These uniform amount in the event that any revenue to proposals in turn reduce projected out year the State including federal aid is reduced from financial gaps. projected levels. To reduce those financial gaps the Executive In addition to this proposal the Executive has Budget utilizes financing mechanisms, such as advanced language allowing the Executive to proposed new taxes on for-profit insurance reduce funding for local assistance programs if companies that recently benefitted from federal revenues projected to support those specific local tax changes, a surcharge on opioid prescriptions, assistance programs are not realized throughout an internet conformity tax, an elimination of the fiscal