NYSAC State Budget Comparison Analysis

NYSAC State Budget Comparison Analysis
The Senate and Assembly have introduced their respective one-house budget proposals and
this will lay the groundwork for finalizing the 2015-16 state budget.
State Revenues
The Revenue Consensus Forecast agreed that $200 million in more in general fund r evenue
would be available for purposes of the 2015-16 financial plan – above the Governor’s Budget
submission. Additionally, another bank settlement agreement of $610 million was announced
this week, but it has not been determined if this revenue will become part of budget
discussions.
Next Steps
The Assembly and Senate will pass Budget Resolutions allowing for the convening of a
conference committee on the budget. The general conference committee will meet immediately
and then appoint conferees to “budget tables” to iron out difference in each major policy area.
Fiscal targets for each “table” will be provided by Leadership with any disagreements (or
inability to hash out a resolution at a particular table) settled at the leaders table.
The Governor has linked several major policy initiatives to the budget mainly in the education
and ethics areas, which for the most part have been rejected by the Legislature. Delinking these
policy initiatives from the final budget deal will be a major point of discussion.
Public meetings of the Budget Conference Committees should occur the week of March 16 t h
and the final budget needs to be introduced by March 28t h , in order to “age” (3 days) and be
voted on in time for the April 1 st start of the fiscal year.
County Priorities
Neither one-house budget bill attempted to provide any new mandate relief as counties had
hoped (mainly having the state take more fiscal responsibility for Medicaid and allowing
counties to lower tax caps proportionately in order to provide direct property tax relief). As it
stands the proposals on the table do not reduce property taxes, but would lower tax liabilities
for many New Yorkers.
Items of interest to counties that still need to be negotiated because of differences in the
varying budget proposals include the following:


Spending the $5.4 billion one-time surplus (or possibly $6 billion) from bank
settlements. The Senate has a significantly different plan than the Governor and
Assembly. The Senate plan is much larger and targets local infrastructure more
thoroughly and directly;
Allowing counties to renew their existing local sales tax rates without the need
for State legislative action (Senate included and the Governor has supported this in the
past);











Raising the Age of Criminal Responsibility – The Governor and Assembly have
included this in their budgets, but the Senate did not include it, acknowledging concerns
about cost and implementation, among other things;
Circuit Breaker Income Tax Credits – the Assembly supports the Governor’s
proposal with modification (including delinking payments from tax -cap compliance),
the Senate wants to enact an enhanced tax rebate check program for more households;
Ensuring the county Medicaid spending caps are maintained – The Governor’s
budget and Assembly modified language that would help moot a pending court case’s
negative impact on counties – the Senate did not support this language;
Increasing community college FTE state aid – the Senate and Assembly have
added differing amounts on the table to increase this aid above the Governor’s budget
recommendation;
IDA Reforms – the Assembly and Senate have both rejected the Governor’s reforms in
support of the county position.
Restoring funding cuts to VLTs – The Senate and Assembly support restorations;
Rejecting the Governor’s proposed cuts to public health programs and
program consolidations – The Senate and Assembly reject the Governor’s proposal;
Finalizing funding for the Environmental Protection Fund – The Senate and
Assembly are proposing increases above the Governor’s budget;
Exempting local governments subject to the MCTD payroll mobility tax
(except NYC) to having to continue to pay it – The Senate included language to exempt;
Finalizing appropriations of numerous agriculture grant programs – The Senate
restored numerous cuts and increased funding across the board for many programs; and
Raising the Minimum Wage – The Assembly calls for a significant increase in the
minimum wage and creates two regions, NYC and neighboring counties with a
population in excess of 900,000 and a ROS region. The impact on counties as employers
and certain labor intensive industries may differ in certain regions of the state. The
Senate did not support any changes to minimum wage.
We continue to review all budget proposals for additional items that may need to be addressed
over the next few weeks.
Governor School Aid
Because of the high priority placed on school aid by the Governor and Legislative leaders a
short update is included here. The proposed budget offers $23.1 billion in total K-12 education
aid, representing a $1.1 billion increase (4.8 percent). This total does not include funding for
statewide prekindergarten for 4 year olds which is continued in a separate account. The full
increase in school aid is contingent upon the enactment of a wide variety of education reforms
sought be the Governor related to student testing, teacher evaluations and tenure.
Assembly
 Rejects the linkage that education reform must be forthcoming to receive the $1.1 billion
increase. Assembly provides $23.9 billion in total K-12 aid, an $800 million increase
over the Governor’s proposal. Also provides an additional $80 million for statewide
universal prekindergarten to be split $40 million for New York City and $40 million for
rest of state.
2
New York State Association of Counties
www.nysac.org
Senate
 Modifies the linkage between education reform and state aid increases. The Senate
provides $24 billion in total K-12 aid, a $900 million increase over the Governor’s
Budget proposal.
Senate and Assembly added funding in different aid categories which result in significant
distributional differences between districts.
Use of Bank Settlement Proceeds
 (Assembly largely supports Governor’s Plan)
 (Senate reallocates the Governor’s proposals and increases funding) – SEE COMPARISON
MATRIX Below
Background
About $5.4 billion in bank settlement proceeds are available to the state for future use. These
funds are included in the Governor’s budget proposal, but are not part of the $141 billion in
State Operating Funds. A portion of settlement funds were dedicated to the current year
budget ($275 million). The Financial Plan also assumes settlement proceeds of $250 million in
2016-17 and $100 million the following two years.
The Governor’s Plan
The Governor’s 2015-16 Budget proposes the creation of a new capital fund called the
Dedicated Infrastructure Investment Fund. The Fund will have two distinct accounts: Special
Infrastructure ($3.1 billion) and Upstate Revitalization ($1.5 billion). A third reserve account of
$850 million is established that rounds out the $5.4 billion spending plan for the settlement
funds.
While the fund is established for the specific purposes described there are provisions that
would allow these funds to be transferred to the general fund in certain situations, including:
1. To cover state expenses in the case of an economic downturn;
2. To address emergency disaster readiness, response and resiliency; or
3. To offset declines in federal Medicare and Medicaid revenues in excess of $100 million
from anticipated levels. It is unclear at this time if this authority is provided to address
any future federal Medicaid disallowances against the state. The State is currently
appealing a $1.26 billion disallowance related to SFY 2011 for OPWDD Medicaid billings
the federal government has objected to in the past (the state has already lost $1 billion in
annual funding on a prospective basis related to this issue). In addition to the 2011
pending disallowance there are similar federal audits pending for 2012 and 2013
according to state budget documents.
New York State Association of Counties
www.nysac.org
3
Use of One Time Settlement Funds
Governor & Assembly
Senate
$5.4 BILLION PLAN
$7.325 BILLION PLAN
Upstate Revitalization Competition
$1.5 billion for a special competitive
economic development program. Under
the one-time special initiative seven
regional economic development areas
are eligible to compete for one of three
$500 million upstate revitalization
grants.
Comments:
 Speaker Heastie said they are not
completely sold on this being a
competition buts supports the
$1.5B for upstate revitalization)
Upstate Revitalization
$1.5 billion for an upstate revitalization
initiative – DOES NOT REQUIRE A
COMPETITION. Funds appropriated
herein shall be for services and expenses,
loans, grants, workforce development,
business and tourism plan development,
costs associated with program
administration by private firms to support
economic development projects.
Special Infrastructure Account
($3.1 billion)
- $1.285 billion for the NYS Thruway
Authority to support critical repairs and
maintenance.
NYS Infrastructure and
Revitalization ($5.825 billion)
-$885 million for NYS Thruway Authority
to support capital and operations
- $500 million for the “New NY
Broadband Program” ($1 to $1 match)
-$1 billion for high speed broad band
deployment in underserved areas, plus
clean water infrastructure, both on a $1 to
$1 match program
- $400 million for grants to essential
health care providers
-Not Included
- $250 million for new Penn Station
Access
-$1 billion for urban and commercial rail,
mass transit, rapid transit generally for
MTA approved projects (Penn Station not
specifically lined out)
-$150 million for grants to local
governments to help finance innovative
shared services
-Not Included
Funding will support initiatives
based on anticipated economic
development benefits.
New York State Association of Counties
www.nysac.org
4
-$150 million for transit-oriented
development
-$700 million for regionally significant
projects including $150M for the Long
Island Research Triangle Project and $30M
for the Biomedical and Biotechnology
-$150 million for emergency response
-$100 million for emergency response
-$115 million for various infrastructure
improvements
-$115 million for various transportation
projects
-$50 million for Southern Tier/ Hudson
Valley Farm Initiative
-$50 million for Southern Tier/Hudson
Valley Farm Initiative
-Not Included
-$1.5 billion state and local highway and
bridge projects
-Not Included
-$25 million Mass transportation capital
projects and facilities outside the MCTD,
including bus replacement
-Not Included
-$400 million available for state and local
government infrastructure and equipment
including school districts, libraries, SUNY,
MTA, water and sewer districts, etc.
-Not Included
-$50 million for the Main Street
Revitalization program to help fight urban
blight
Establish Reserve Fund
$850 million for purposes outlined by
the Governor to address potential
Financial Plan shortfalls including likely
Medicaid disallowances from the federal
government.
OASAS Programs
$5 million
Not Included
Not Included
New York State Association of Counties
www.nysac.org
5
Local Government Assistance
Assistance to local governments is projected to be lower than last year’s enacted budget.
Largely due to the fact that the Executive Budget Recommendation does not include prior year
“member item” additions to appropriation bills. Gaming Compact appropriations are reduced
due to the elimination of a one-time $11 million county payment related to the new Oneida
Nation gaming compact agreement and a general re-estimate of casino gaming revenues.
Local Government Assistance
2015-16
PROPOSED
BUDGET
Assembly
2014-15
Budget
AIM
NYC
$715,000,000
$0
$715,000,000
$0
$715,000,000
$0
$715,000,000
$0
Citizens
Local
Govt. Efficiency
Reorganization
Grants
Other
Grants
Small Govt Asst.
Essex
Franklin
Hamilton
$35,000,000
$40,000,000
$4,000,000
$35,000,000
$40,000,000
$4,000,000
$35,000,000
$40,000,000
$4,000,000
$35,000,000
$40,000,000
$4,000,000
$124,000
$72,000
$21,300
$124,000
$72,000
$21,300
$124,000
$72,000
$21,300
$124,000
$124,000
$72,000
$72,000
$21,300
$21,300
VLT
Madison
Oneida
Onondaga Co.
(School demo
w/Syracuse)
Cayuga
Seneca
Franklin
Asst. to Counties for
property tax loss
Gaming Compact
Appropriations TOTAL
$29,331,167
$1,500,000
$1,500,000
$2,000,000
$125,000
$700,000
$1,800,000
$700,000
27,245,917
0
0
0
0
0
0
0
$29,331,167
0
0
0
0
0
0
0
$29,345,917
$111,400,000
$91,700,000
$91,700,000
$91,700,000
Senate
Difference
$943,273,467 $913,163,217 $915,248,467
New York State Association of Counties
www.nysac.org
0
0
0
$125,000
0
0
0
$900,000
$916,070,917
6
Major Tax Actions
Income Tax Credit for Property Taxes Paid
The Governor proposed a personal income tax credit against property taxes paid that exceed six
percent of adjusted gross income. The credit is available to eligible homeowners on a sliding scale
based on income not exceeding $250,000 in adjusted gross income. The credit is to be phased in
over four years and upon full implementation is estimated to be worth about $1.66 billion annually.
In the first year of the credit it will only apply to school property taxes. The income tax credit will
also be extended to renters with incomes up to $150,000.
The credit is only available to eligible homeowners in jurisdictions that meet their property tax cap
thresholds (Assembly delinks from tax cap compliance), which the Governor proposes to
make permanent. If a jurisdiction fails to meet the tax cap, their portion of the levy is removed
from the 6% calculation. Operationally, the credit would not reduce property taxes but would
provide the eligible homeowner a state financed income tax credit when they file their income
taxes.
ASSEMBLY
Accepted with modifications:
 removes requirement that a municipality be tax cap-compliant in order for the income tax
credit to be provided to a recipient;
 clarifies that STAR credit is deducted from property taxes paid when calculating the value of
the credit;
 restricts Commissioner’s discretion in determining if rent seems excessive compared to
comparable accommodations; and
 for taxpayers that itemize their federal income taxes, the deduction for real estate property
taxes paid, New Y ork itemized deduction otherwise allowable shall be reduced by the
amount of the credit claimed under this subsection
Senate Creates New Property Tax Rebate Check Program
The Senate rejects the Governor’s circuit breaker income tax credit and creates a New York
property tax relief check program. Beginning in school fiscal year 2015-16 homeowners will be
eligible for tax rebate checks if their school district is cap compliant and the value is as follows:
 2015-16 multiply value of basic or enhanced STAR credit by 36.5 percent
 2016-17 multiply value of basic or enhanced STAR credit by 37.5 percent
 2017-18 and thereafter multiply value of basic or enhanced STAR credit by 55 percent
 Payment of tax rebates is subject to annual appropriations
Other Tax Actions
Establishes a New Education Tax Credit
The Budget creates a new Education Tax Credit, which allows taxpayers to contribute to public
education entities, school improvement organizations, local education funds, and educational
scholarship organizations. Corporate franchise and individual taxpayers will receive a
nonrefundable credit equal to 75 percent of their authorized contributions, up to a maximum
annual credit of $1 million. The program will be capped at $100 million in aggregate education
New York State Association of Counties
www.nysac.org
7
tax credits annually. Half of the annual cap will be dedicated to public education entities,
school improvement organizations, and local education funds. The other half will be allocated
to educational scholarship organizations that provide support to low-and-middle-income
students who attend either a public school outside of their district or nonpublic school.


(Assembly Rejected)
(Senate Supports)
Reduce Income Tax on Small Businesses
The budget proposes to reduce the current income tax on small businesses from 6.5 percent to 2.5
percent over a three year period. The rate will be reduced to 3.25 percent for tax year 2016, to 2.9
percent for tax year 2017 and to 2.5 percent for subsequent tax years beginning in 2018. This will
provide $32 million in new tax relief when fully effective. Small business is defined as having fewer
than 100 employees and net income below $390,000 and the tax cut is applicable if the entity files
under the corporate franchise tax (Article 9-A).
 (Assembly Supports)
 (Senate Supports and increases income thresholds)
Doubles the Urban Youth Jobs Program Tax Credit
This program provides a credit to employers who hire unemployed, at-risk youth. The annual
allocation would be increased to $20 million for tax years 2015 through 2018, with a focus on
jurisdictions with high youth unemployment.
 (Assembly Supports)
 (Senate rejects)
Reform the Industrial Development Authority (IDA) Program
Would require the Empire State Development Corporation (ESD) to approve any IDA projects
that contain state sales tax benefits based on job and investment targets. ESD would also be
granted authority over these local IDA projects to consider whether benefits granted would
provide a competitive advantage against existing businesses.
 (Assembly & Senate Rejected)
Extends the Wine Tasting Sales and Use Tax Exemption to other Alcoholic Beverages
Currently, wine tastings are exempt from sales tax —the budget would extend this exemption to
beer, cider and liquor.
 (Assembly & Senate Supports)
Expand Sales Tax Collection Requirements for Online Marketplace Providers
Online providers such as Amazon and eBay supply a marketplace for outside sellers to sell their
products to New York consumers. Currently, such outside sellers are required to collect sales
tax from New York residents if the seller is in New York. Many marketplace providers already
agree to collect the tax for the outside seller in this instance. Under this proposal, the
marketplace provider would be required to collect the tax when they facilitate the sale, whether
the seller is located within, or outside, New York. The state estimates that additional local sales
tax collections of up to $20 million statewide is possible from this proposal.
 (Assembly Supports)
 (Senate Rejects)
New York State Association of Counties
www.nysac.org
8
Brownfield Tax Credit Reforms
Assembly
 Rejected Governor’s proposal to reform the Brownfields Tax Credit Program. The
Assembly extends the current program through 2025, adds environmental restorations
as an eligible purpose and increases bond authority from $1.2 billion to $2.2 billion.
Senate
 Rejects most of the Governor’s Brownfield reforms, but does provide significant reforms
of the program.
---- MAJOR
TAX ACTIONS NOT PROPOSED BY GOVERNOR ----
ASSEMBLY & SENATE
 Alternative refueling and recharging credit.

Expands College Tuition Tax credit to include educational expense that also grows in
value in future years. Slightly different thresholds.

Modifies QEZE tax factor.

Adds all public library systems and all public and free association libraries as “eligible
education institutions” for purposes of exempting MCTD mobility Tax

New York Jockey Injury Compensation Fund, Inc. – establishes deduction from
owners purse to support jockey worker’s compensation costs at no more than 2 percent
(up from 1 percent) through 2017, after which it shall not exceed 1 percent.

Extends for 0ne-year the vendor fee rate Monticello Raceway.

Caps the value of boats purchased by NYS residents for use outside of NYS that
subsequently become subject to use tax in NYS at no more than $230, 000 for purposes
of determining tax due. SENATE has similar “tolling” language but no sales tax value
provisions.
ASSEMBLY
 Makes existing NYC circuit breaker permanent and extends provisions to residents of
the City of Yonkers.

Establishes the empire state music production credit. Caps program at $25 million
annually and individual credits at no more than $2.5 million.

Extends for 4 years certain tax incentives available in lower Manhattan.
New York State Association of Counties
www.nysac.org
9
SENATE
 Authorizes counties to approve existing local sales tax rates without state legislative
approval

Proposes to exempt municipalities from paying the MCT D Mobility Tax (except NYC)

Extends the property tax cap to the City of New York beginning in 2016-17

Expands film production tax credit in selected upstate counties mainly in the Capital
Region, Hudson Valley and Suffolk

Authorizes Nassau County to implement a tax exemption program for seniors (over 65
years of age) that live in manufactured housing under certain conditions

Authorizes Mixed Martial Arts in New York

Phases out utility assessment sooner than current law

Establishes an Optional alternate simple income tax calculation

Enacts a limit on dollar amounts set aside during appeals for tobacco companies

Repeals Stock transfer tax

Establishes a Credit for rehabilitation of distressed commercial properties. Credit may
not exceed $100,000 and local governments must designate eligible properties.

Establishes an asbestos remediation tax credit. Up to 20 percent of actual costs with a
cap of $1m over a three year period for the project.

Enhances tobacco excise tax enforcement

Expands low income housing tax credit program to include middle income applicants as
well

Establishes an Elderly residential emergency repair credit

Establishes a senior utility circuit breaker tax credit

Requires a criminal background check on “key” casino employees
New York State Association of Counties
www.nysac.org
10
Agriculture
The Governor’s Budget proposal eliminates a significant number of grants to specific organizations.
While most of the items eliminate are linked to adds made by the Legislature during the prior year
budget process, some are not. Eliminating prior year “member items” is the standard procedure
used in most Executive Budget Recommendations. The deletions will be subject to negotia tion as
the budget moves through the process.

The Senate and Assembly both proposed increased funding for certain agriculture local
assistance programs. The Assembly added $1.3 million while the Senate added over $19.5
million.
Program
Ag. Child Care (Migrant)
2015/16
Ex ecutive
Budget
$6,521,000
$7 ,521,000
$6,521,000
Core Diagnostic Lab
$4,425,000
$4,425,000
$5,425,000
Quality Milk (Mastitis)
$1 ,174,000
$1 ,174,000
$1 ,174,000
NY S Cattle Health
Assurance
Johnes Disease
$360,000
$360,000
$360,000
$480,000
$480,000
$480,000
Rabies Prev ention
$50,000
$250,000
$510,000
Av ian Disease
$252,000
$252,000
$252,000
Farm Fam ily Assistance
$384,000
$484,000
$800,000
Integrated Pest Mgmt
$500,000
$500,000
$500,000
Genev a Ex periment Station
– Seed Inspection Program
Genev a Ex periment Station
– Hop T esting
Golden Nem atode
$1 28,000
$1 28,000
$1 28,000
$40,000
$40,000
$200,000
$62,000
$62,000
$62,000
Future Farm ers of Am erica
$1 92,000
$1 92,000
$892,000
Ag in Classroom
$80,000
$80,000
$80,000
Ass'n of Ag Educators
$66,000
$66,000
$66,000
NY S Apple Growers
Association
Wine / Grape Foundation
$206,000
$7 50,000
$7 50,000
$7 13,000
$963,000
$1,000,000
Farm Viability Institute
$400,000
$1,500,000
$1,900,000
Pro Diary
$822,000
$822,000
$1,200,000
Agriculture Dom estic Arts
$340,000
$500,000
$500,000
FVI – Dairy Profit T eam s
$1 50,000
$1 50,000
$1 50,000
Maple Producers
Association
T ractor Rollover Program
0
$125,000
$200,000
0
$100,000
$200,000
Northern NY Ag
Dev elopment
Eastern Equine Encephalitis
0
0
$600,000
0
0
$17 5,000
NY S T urfgrass Assn.
0
0
$17 5,000
ASSEMBLY
New York State Association of Counties
www.nysac.org
SENATE
11
North Country Vaccine
Prog.
Christmas Tree Farmers
Assn
NY S Berry Growers Assn
0
0
$25,000
0
0
$125,000
0
0
$320,000
Genesee Livingston Steuben
Wy om ing agricultural
academy
NY Corn and Soy bean
Growers
Cornell Honeybee Research
0
0
$100,000
0
0
$7 5,000
0
0
$7 5,000
Cornell Maple Research
0
0
$125,000
Apple Research and
Dev elopment
Cornell Onion Research
0
0
$500,000
0
0
$7 5,000
Cornell Vegetable Research
0
0
$100,000
Island Harv est
0
0
$20,000
Wood Products Council
0
0
$100,000
Grown on Long Island
0
0
$100,000
Quality Assurance and
Control
Precision Agriculture Study
0
0
$250,000
0
0
$100,000
Long Island Deer Fence
Grants
Grown in NY
0
0
$200,000
0
0
$1,000,000
Regional Food Hubs
0
0
$1,7 50,000
Farm to School
0
0
$2,500,000
Senior Farm ers Market
Nutrition
Cornell Farm Apprentice
0
0
$1,800,000
0
0
$300,000
T hruway Reimbursement
0
0
$250,000
NY S Farm Bank
0
0
$1,000,000
Cornell Sm all Farms OneStop
Y oung Farm er Rev olv. Loan
0
0
$450,000
0
0
$1,000,000
T ASTE NY
$1 ,100,000
$1 ,100,000
$1 ,100,000
School Local Food Program
Com petitive Fund
T otals
$250,000
$250,000
$250,000
$1 8,695,000
$22,7 44,000
$38,210,000
Southern Tier and Hudson Valley Farms
The Budget includes $50 million from the Special Infrastructure Account (bank settlement funds)
to assist farmers and other related businesses in the Southern Tier and Hudson Valley. The funding
is intended for farmland preservation and other strategic initiatives to protect farms in those
regions.
 Assembly and Senate support
New York State Association of Counties
www.nysac.org
12
Community Colleges
The Governor’s proposal would require “experiential learning” before graduating from SUNY or
CUNY schools. The proposal requires the Trustees to enact a resolution by the end of 2015 that
“students enrolled in an academic program of the State University of New Y ork shall be required to
participate in an approved experiential or applied learning activity as a degree requirement.” The
resolution is required to define “approved experiential or applied learning activities, methods of
faculty oversight and assessment, responsibilities of business, corporate, non- profit or other
entities hosting students, and a plan for full implementation of this requirement.”
 The Senate rejects this proposal.
The Budget provides no increase in Community College FTA aid.
 The Senate adds $18 million for this purpose, or about $100 per FTE over the Governor’s
budget proposal.

The Assembly adds about $6.8 million for this purpose.
District Attorney Salaries
The Budget provides $4,212,000 for counties to cover 100% of the state required District Attorney
salary increase. This increase occurred in the past three years and by law the D.A. salary is tied to
the State Judge salary.
 Senate and Assembly concur.
Education
The proposed budget offers $23.1 billion in total K-12 education aid, representing a $1.1 billion
increase (4.8 percent). This total does not include funding for statewide prekindergarten for 4 year
olds which is continued in a separate account. The full increase in school aid is contingent upon the
enactment of a wide variety of education reforms sought be the Governor related to student testing,
teacher evaluations and tenure.
Assembly
 Rejects the linkage that education reform must be forthcoming to receive the $1.1 billion
increase. Assembly provides $23.9 billion in total K-12 aid, an $800 million increase over
the Governor’s proposal. Also provides an additional $80 million for statewide universal
prekindergarten to be split $40 million for New Y ork City and $40 million for rest of state.
Senate
 Modifies the linkage between education reform and state aid increases. The Senate provides
$24 billion in total K-12 aid, a $900 million increase over the Governor’s Budget proposal.
Senate and Assembly added funding in different aid categories which result in significant
distributional differences between districts.
Preschool Special Education
To improve service delivery and administration of the program, the proposed budget establishes
regional rates for Special Education Itinerant Teacher (SEIT) providers. SEIT providers are
currently reimbursed based on their individual historical costs and rates for these services vary
significantly, even within the same region. Establishing regional rates will change the current
New York State Association of Counties
www.nysac.org
13
payment structure by mandating that all providers within a region are paid the same amount for
providing these services. Implementation of regional rates will be phased-in over no more than
four years.
 Assembly & Senate support.
Environment & Energy
Environmental Protection Fund
The Budget proposes an additional $10 million for the Environmental Protection Fund (EPF). The
EPF would be funded at $172 million. The 2014/15 budget contained a $9 million increase for the
EPF over 2013-14 levels.
Assembly
 Increased the EPF appropriation to $182 million, a $10 million increase above the level
proposed by the Governor.
Senate
 Proposes to fund the EPF at $200 million to support critical environmental initiatives, clean
air and water projects, open space preservation, and energy efficiency. This is a $28 million
increase over the Governor’s proposal.
Brownfield Reforms
The Governor’s Budget proposes an extensive overhaul of the Brownfield Tax Credits program to
narrow its scope.
Assembly
 Rejects the Governor’s proposed reforms and simply extends the existing program for 10
more years, increase authorized borrowing by $1 billion and adds Environmental
Restoration Program as an allowable use of bond authority dedicated to the superfund
program.
Senate
 The Senate proposed an overhaul of the Governor’s proposed Brownfields program. The
Senate proposal extends the Brownfields Cleanup Program (BCP) redevelopment tax credits
for 10 years. It also expands eligibility for the Tangible Property Credit (TPC), changing the
definitions of affordable housing, underutilized and functionally obsolescent. The proposal
further allows for “bonus” tax credits for projects located in an Environmental Zone or
BOAs, that result in affordable housing, and/or are manufacturing sites. Lastly the proposal
creates a fast-track project approval process (without access to tax credits) that maintains
state oversight of cleanups and liability releases.
Ethics Reform
The budget proposes creating a salary commission that would convene every four years,
commencing on June 1, 2015, to examine, evaluate and make recommendations regarding
compensation for the governor, lieutenant governor, attorney general, comptroller, mem bers of the
legislature, and state officers covered by section 169 of executive law. The commission would
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examine the prevailing adequacy of pay levels and other benefits, including the necessity for and
level of per diem and reimbursements for expenses.
If the commission determines that legislative pay should be adjusted, the adjustment will consist of
a two-tier level of pay, as follows:
 A tier one salary for members who agree to not receive “income from outside sources” for
the upcoming legislative session; and,
 A tier two salary that would be set lower than tier one for members who elect to receive
income from outside sources for the upcoming legislative session. If legislators elect to
receive outside earnings, these earnings may be capped and they must disclose, without any
limitation, the sources of outside income. Also, the legislator shall be barred from
representing any person or entity before any state Agency.
The proposed commission will be comprised of three members: one appointed by the Governor,
who will serve as chair of the commission; one by the Temporary President of the Senate; and one
by the Speaker of the Assembly. The commission will hold at least four public hearings, at different
sites across the state, to gather input from citizens. The commission will publish its findings within
150 days after its establishment and must be unanimously voted on by the commission in order to
draft legislation to send to the governor and legislature for consideration.
Campaign Finance Reform
The governor proposes to expand last year’s pilot program on the public financing of campaigns to
all state offices in 2018. The budget proposes a voluntary system of public financing, by allowing
resident taxpayers to make a donation to a new Campaign Finance Fund through a check-off box
on their State income tax return, beginning in the 2016 tax year. In addition, the proposal lowers
contribution limits, closes loopholes in the campaign finance law, and clarifies and enhances
restrictions on the personal use of campaign funds.

The Assembly and Senate did not include ethics reforms in their budget proposals.
Gaming Revenue from Tribal Compacts and VLT Revenue
As described, the 2015-16 budget includes a re-estimate of gaming revenues to be shared with local
governments. The overall appropriation drops from about $111 million last year to about $91
million this year.
 Assembly and Senate concur on this funding amount related to gaming revenues.
Part of the reduction is attributable to a one-time $11 million county payment for land claims and a
general re-estimate of expected gaming revenues in the coming year of about $9 million (about
nine percent lower).
VLT receipts for the counties that received them were reduced to 2013-14 levels—a 21 percent
reduction from last year’s enacted budget.
 The Assembly and Senate restore funding cuts proposed to upstate VLT municipalities.
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Indigent Legal Defense
2014-15 Budget Final
$81 million to counties including NYC. An additional $ 1.9 million for state operations
including OILS operating budget.
2015-16 Executive Budget
 $84 million to counties including NYC (this 3 million increase is to cover
implementation of the Hurrell-Harring settlement for the 5 counties involved in the
case, with $1 million to pay county costs for “interim steps” to implement the ILS plan
for providing counsel at arraignment and $2 million to improving the quality of indigent
defense).
 An additional $1.9 million for state operations including OILS operating budget (this
increase of $1 million is to cover the plans and studies OILS is required to conduct
regarding future implementation of counsel at arraignment and case-cap workloads in
the 5 counties involved in the Hurrell-Harring settlement.
Senate
 Same as the Executive Budget with an additional study and reporting requirement to be
performed by OILS. This written proposal must be submitted to the Governor and the
legislature no later than August 1, 201. The proposal will estimate the total cost
statewide of providing each criminal defendant eligible for 18-B representation with
adequate representation, including caseload/workload standards and representation at
arraignment. The cost estimate would include resources needed for adequate
representation such as investigators, interpreters and experts, as well as training and
effective supervision. The Division of Criminal Justice Services, New York District
Attorney’s Association and Office of Court Administration would be required to develop
a written plan to ensure adequate representation for the State to mirror presence at
arraignment, caseload standards, resources, training and supervision (S.4205; Part BB).
Assembly
 $87 million to counties including NYC (this is a $3 million increase which is the same as
the Senate and Executive, for the Hurrell-Harring settlement, and unlike the Senate and
Executive there is an additional $3 million in funds that “…shall be allocated pursuant to
a plan proposed by the Office of Indigent Legal Services…” for all counties outside New
York City.)
 An additional $1.9 million for state operations including OILS operating budget (this
increase of $1 million is to cover the plans and studies OILS is required to conduct
regarding future implementation of counsel at arraignment and case-cap workloads in
the 5 counties involved in the Hurrell-Harring settlement).
 Additionally the Assembly proposes to transfer the right to approve county indigent
defense plans from OCA (current law) to OILS.
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Juvenile Justice Reform – Raising the Age of Criminal Responsibility
The 2015-16 Executive Budget proposes language to implement recommendations made by the
Commission on Y outh, Public Safety and Justice to raise the age of criminal responsibility in New
Y ork. The state proposes to invest $25 million in SFY 2015/16 as parts of this plan. Mainly to cover
any early placements and start-up/training costs. The program is phased in and once fully
implemented, annual costs are estimated at $375 million in 2020-21. The Governor has indicated
that all incremental costs associated with this initiative will be funded by the State.
 Assembly supports with modifications.
 Senate does not support this proposal in their budget.
The Governor’s Proposal Includes the Following:
Age Changes and Phase-in Periods
 The budget proposed raising the age of juvenile jurisdiction from age 16 to age 17 on
January 1, 2017; and to age 18 on January 1, 2018, as well as raising the lower age of
juvenile jurisdiction from seven to 12 years of age for all offenses except homicide.
 The proposal expands Family Court jurisdiction to include 16 and 17 year-olds charged
with nonviolent felonies, misdemeanors, or harassment or disorderly conduct violations.
Beginning on December 1, 2015, newly sentenced 16 and 17 year olds who would have
gone to prison would be directed to Office of Children and Family Services (OCFS)
facilities.
Court Modifications
 The proposal creates “Y outh Parts” within a superior court to process juvenile offender
cases and allow the Y outh Part to hear cases removed to family court under the
provisions of the Family Court Act. Crimes committed by individuals 16 and 17 years of
age will originate in the Y outh Part for the following offenses.
Detention, Placement and Arrest Procedural Changes
 This legislation prohibits detention and placement for youth who are low risk if they are
adjudicated for first or second time misdemeanors that do not involve harm to another
person. This legislation also prohibits detention for youth who have a technical violation
of probation and do not impose an imminent risk to public safety.
Impact on Probation Departments
 This proposal requires probation departments to establish family engagement specialists
to facilitate adjustments of cases. Probation is also to leverage a continuum of evidencebased diversion services for impacted youth. The proposal also allows for additional time
for probation adjustment in order to access necessary services to create the capacity for
probation to obtain an order of protection while adjusting a case.
Persons In Need of Supervision
 Under the current law Persons in Need of Supervisions (PINS) can be held in non-secure
detention centers if the court feels it is in the best interest of the youth and the public.
Under this proposal, effective January 1, 2018, the use of detention facilities in PINS
proceedings will be prohibited, amending section 720 of the Family Court Act to prevent
the detention of a child.
 The foster care placement of PINS will only be authorized for sexually explicit youth
whom may be in needs of specialized services. PINS, as well as young children are no
longer subject to authority as juvenile delinquents, through the establishment of Family
Support Centers.

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Family Support Centers
 Family Support Centers (FSC) are established under the Article 6 of the Social Service
Law. FSC will provide services either directly or through referral with partner agencies,
including crisis intervention, assessment and screenings, mental and behavioral health
services, case management and respite services.
Juvenile Offenders and Youthful Offenders
 This proposal requires using an established sentencing for both Juvenile Offenders and
Y outhful Offender status, including 16 and 17 year olds. Y outhful Offender status will be
expanded to include 18, 19 and 20 year olds. The Office of Children and Family Services
is required to provide post-release supervision for Juvenile Offender youth coming out
of their OCFS facilities.
Education Services
 The proposal continues a 2014/15 budget action that gave OCFS authority to contract
with the Boards of Cooperative Educational Services (BOCES) for certain educational
services for youth. This proposal would expand such authority to allow OCFS to contract
with BOCES to provide any educational services at OCFS youth facilities that BOCES
provides to school districts.
Expenditures
 The cost of family engagement specialists would be included in a probation department’s
application for state aid. Additional aid to probation departments will include funding
for juvenile risk intervention services. The commissioner of DCJS shall provide funding
for probation departments for a continuum of evidence-based intervention services for
youth sentences in family court or under the youth part.
 The proposal authorizes state reimbursement for 100 percent of foster care, afternoon
care and independent living services, detention and Close-to-Home for 16 and 17-yearold youth newly placed as a result in the changes of age of juvenile jurisdiction.
 The proposal requires no Local Social Service Districts to reimburse OCFS or youth
cared for under this proposal after December 1, 2015. Further, the law amends language
stipulating the state’s reimbursement to counties for youth in detention facilities prior to
January 1, 2018. After January 1, 2017, state reimbursement will be made available to
cover 100% of the county’s expenditures for youth in non-secure and secure detention.
Assembly - Supports the Governor’s proposal with some modifications.
 Restores provisions to allow and increase the standards for placing Persons In Need of
Supervision (PINS) in foster care and enhance services for juvenile delinquents and
PINS
 Removes “Y outh Parts” within a superior court to process juvenile offender cases. The
Assembly proposal originates proceedings against most youth under the age of 18 in
Family Court, maintain limited Juvenile Offender crimes in adult court, allow for
waivers up of 13 to 15 year old Juvenile Offenders.
 Include youths charged with misdemeanor, felony vehicle and traffic offenses with the
non--‐juvenile offenses processed in family court
 Narrow the list of juvenile offenses for 16 year olds.
Senate – Not Included
The Senate is concerned about the lack of specific details on how the proposal would be
implemented and the impact it would have on local social service districts, probation
departments, and the court system. Age Changes and Phase in Periods
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Labor and Job Training
Raise the Minimum Wage to $10.50
The federal minimum wage is currently $7.25 per hour, and the minimum wage in New Y ork is
$8.75 per hour. In 2013, Governor Cuomo signed legislation increasing the State’s minimum wage
from $7.25 to $9.00 in 2015 to better align with the cost of living. The Governor’s budget proposes
raising the statewide minimum wage again, to $10.50 by the end of 2016. Additionally, because
New Y ork City has one of the highest costs of living in the world, the Governor proposed raising the
City’s minimum wage to $11.50.
Assembly Minimum Wage Proposal
 $12.50 in New Y ork City and counties with a population of 900,000 or more (in MCTD
region) and $10.50 in the remainder of the state by December 31, 2016
 $13.75 in New Y ork City and counties with a population of 900,000 or more (in MCTD
region) and $11.55 in the remainder of the state by December 31, 2017
 $15.00 in New Y ork City and counties with a population of 900,000 or more (in MCTD
region) and $12.60 in the remainder of the state by December 31, 2018
 Each adjusted for inflation thereafter.
 Includes increases for food service workers as well based on the same regions described
above.
 It does appear that the minimum wage increase would apply to farmworkers.
Senate
 Does not include any changes to existing law regarding the minimum wage.
Medicaid & Health Care
The state continues to move forward with its expansion of mandatory Medicaid managed care for
all populations, including long term care. The state also continues its two-year spending plan for
Medicaid and the global spending cap that is linked to the 10-year moving average of health care
inflation, which will equal about 3.6 percent in the 2015-16 fiscal year. The total costs of the
Medicaid program will increase from about $58.7 billion to just over $62 billion – much of the
funding will come from the federal government and is related to the expansion of Medicaid
eligibility under the Affordable Care Act. The state estimates the number of New Y orkers enrolled
in Medicaid will surpass 6.1 million this year.
The budget also provides an estimate of the annual cost to the state financial plan related to the two
separate local Medicaid caps that have been enacted since 2005. The budget also includes
language to moot a pending court case that would require counties to spend beyond their current
law statutory Medicaid caps in certain instances. The Senate does not support this proposal and
the Assembly modified it considerably.

Both chambers modified the Governor’s health proposals significantly, especially related to
DSRIP waiver issues, restorations of selected provider reimbursements and pharmacy
provisions.
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Public Health
Article 6 Health Funding
The Budget combines 41 separate funding programs into five categories with overall lower funding
compared to last year’s budget.
 Assembly and Senate do not support this consolidation and associated funding
reductions.
Flouridation
A new provision would require any municipality which fluoridates its public water system to
publically disclose their intent to discontinue fluoridation. The municipality would be required to
provide public hearings, justify their reasons for discontinuing fluoridation, provide alternatives to
fluoridation and consult with health professionals on their decision. The budget also provides $5
million in grant funding for municipalities seeking to create new fluoridation systems or
replace/repair existing ones.
 Assembly and Senate support this proposal.
Public Safety
Interoperable Emergency Communications
The Governor proposes level funding for the Statewide Interoperable Emergency Communications
Grants (SICG) program at $75 million, dividing this up into $50 for traditional grants to counties,
$10 million for operating expenses to PSAPs, and $15 million set aside to advance completion of a
fully interoperable statewide public safety communications network. $75 million is a level funding
appropriation from the 2014/15 allocation.
 The Assembly and Senate support.
Transportation
CHIPS and Marchiselli
This budget proposes $ 438,097,000 for CHIPS funding and $39,700,000 for Marchiselli
funding. This level is consistent with the 2014-2015 Budget and is an increase of $75 million
form the 2012-2013 Budget.

The Senate adds $50 million in CHIPS to address harsh winter conditions. The Senate
also provides $1.5 billion for state and local highway and bridge projects in relation to
the availability of one-time Bank Settlement funds.
Design Build Authority
This bill would make permanent the provisions of the Infrastructure Investment Act of
2011 and would expand the definition of authorized State entity, revising the definition to:
● Any state agency as such term is defined in section 160 of the state finance law.
● Any state authority as such term is defined in section 160 of the state finance law.
● Any state authority as such term is defined in section 2 of the public authorities.
● The City University of New Y ork, the State University of New Y ork, and any and all other
affiliates associated.
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The proposed budget would expand the provisions of the Act to enable all State agencies and public
authorities to award a contract to a single entity for both the design and construction, as well as
allow design- build contracts for capital projects related to buildings. I n addition, the threshold
amounts for projects utilizing design-build contracts would be increased from a minimum of $1.2
million to a minimum of $5 million. Projects in excess of $50 million would be required to prepare
a project labor agreement feasibility study.
 The Assembly rejects the expansion of design build authority.
None of this new design build authority extends to projects undertaken by counties.
Youth Placement
The 2015-16 Budget caps the mandated costs imposed on counties and New Y ork City for the
operation of New Y ork State Office of Children and Family Services juvenile facilities. Billings
would be capped at $55 million annually through 2018-19, providing total local savings of $425
million over this time period.
 (Assembly & Senate support as proposed).
The proposal requires New Y ork City to reinvest their $220 million in savings over this time frame
to homeless assistance programs and services. There is no such requirement for the rest of the
counties.
Under current law the state has authority to retroactively bill counties and New Y ork City to
support the costs the state incurs to place youth in detention at state operated facilities. It has been
the practice of the state to send bills to counties in excess of $100 million that lu mp several years of
retroactive adjustments to initial billings. Under this proposal the state would end the practice of
retroactive billing (any outstanding interim and final rates that have not been billed for prior years
will not be sent to counties). Prospectively, each county would be assessed their share of the capped
$55 million appropriation based on their proportionate share of placements in state facilities.
540 Broadway
Albany, NY 12207
(518)465-1473
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