New York State Budget Summary

Transcription

1 New York State Budget Summary Taxes Property Tax Freeze The final budget includes an amended version of Governor Cuomo s property tax freeze proposal. Under the final plan, homeowners will receive a tax credit if their local governments and/or school districts stay within the two percent property tax cap in the first year. In the second year, the municipalities must stay within the tax cap and propose a plan to save one percent of their tax levy per year over three years. Municipalities that have already enacted efficiencies can earn credit for those actions. The language in the final budget does not mandate consolidations and contains no penalties for not achieving savings. The plan will reduce state revenues by an estimated $1.5 billion. Corporate Taxes The legislature accepted the Governor s proposal to merge the Bank Tax with the Corporate Franchise Tax. The Corporate Franchise Tax rate would be lowered from 7.1% to 6.5% beginning on January 1, These changes would lower state revenues by an estimated $346 million annually once fully implemented. The budget agreement would eliminate the corporate franchise tax for all New York manufacturers and provide manufacturers with a 20% real property tax credit. Estate Tax The final budget raises the basic exemption for the Estate Tax from $1 million to $5.25 million over four years:

2 4/1/14-3/31/15: $2,062,500 4/1/15-3/31/16: $3,125,000 4/1/16-3/31/17: $4,187,500 4/1/17-12/31/18: $5,250,000 Starting in 2019, the exemption will increase annually by the CPI. The budget does not lower the tax rate as originally proposed by the Governor. Other Tax Items A small circuit breaker is provided in the budget, but only for homeowners and renters in New York City. Residents would be provided with a credit of up to $500 for two years. State Operations Office of Children and Family Services (OCFS) o The final budget rejects allowing OCFS to close limited-secure facilities without providing one year notice prior to closure. Department of Corrections and Community Supervision (DOCCS) The budget allows for the closures of the following correctional facilities: o Butler Correctional o Chateaugay Correctional o Monterey Shock Correctional o Mt. McGregor After the closure of these four facilities on or after July 26, 2014, the number of correctional facilities would remain unchanged until July 26, 2016 Department of Transportation o The Legislature rejected Governor Cuomo s proposal to make permanent the ability of five state agencies to utilize design/build and other alternative contracting methods and also expand the ability to local governments. o The legislature accepted the Governor s proposal of $438 million for counties, cities, towns and villages through the state s Consolidated Local Highway Improvement Program (CHIPs).

3 o The budget includes an additional $40 million for the benefit of highway departments repairing roads. o Marchiselli Aid continues to be funded at $39.7 million. Department of Motor Vehicles o The final budget rejects making permanent the ability for the DMV to be open on Saturday. Local Governments o The adopted budget maintains AIM funding at last year s level. o The adopted budget increases state aid for municipalities that host video lottery terminal facilities. o 18 municipalities, including Batavia, Monticello, Vernon, Yonkers and Saratoga Springs, will see an increase of approximately 7.6%. Libraries o Library funding faced a cut of $4 million from last years appropriation. o The Legislature restored that cut and increased funding by an additional $1 million. Health Care Safe Patient Handling o The final budget creates a statewide Safe Patient Handling program to help better protect patient and staff in health care facilities. Key Dates: 1/1/15 - Creation of statewide workgroup 7/1/15 - Workgroup issues report on best practices 1/1/16 Health facility committees created 1/1/17 Health facility programs implemented For-Profit Hospitals o The final budget rejects introducing private equity into the State s hospital system. The creation of for-profit hospitals was likely to result in the privatization of SUNY Downstate Medical Center.

4 1115 Medicaid Waiver o The final agreement does not deal with the $8 billion that New York will receive under the 1115 Medicaid Waiver. This means that DOH will have full control over distributing this funding. o It is anticipated that this money will be received from the federal government in late summer or early fall. Capital Restructuring Finance Program o $1.2 billion for eligible facilities to invest in their infrastructure and primary care capacity. o Eligible facilities are general hospitals, nursing homes, diagnostics and treatment centers, clinics, assisted living programs, primary care providers, and home care providers. o An advisory panel is created to examine applications for funding. This panel can only make recommendations. The Commissioner of the Department of Health makes the final decision. o All approvals for funding must go through the Public Authorities Control Board (PCBA) which includes the leaders of the Assembly and Senate. The vote of the PCBA must be unanimous. Education K-12 o Increases education aid by $1.1 billion o Includes a $2 billion education bond to put the new technology in classrooms. This initiative will be voted upon during November s General Election. Universal Pre-K o The budget appropriates $340 million for universal, full-day pre-k. $300 million to NYC $40 million for the rest of the state SUNY o The enacted state budget provides an increase of $7.6 million for SUNY campuses for a total funding allocation of $716 million. o Provides for a $87.8 million subsidy for the three SUNY Hospitals.

5 Child Care o Includes an additional $34 million for child care subsidies. o Facilitated enrollment is funded at last year s level of $7.3 million and is broken down as follows: $2.6 million for Albany, Schenectady, Saratoga, Rensselaer and Oneida $1.1 million for Monroe County $3.4 million for New York City o Includes a new requirement that child care programs must post a notice stating the date of the most recent child care inspection and tell parents how to obtain information regarding the results of the inspection. Human Services o On January 1, 2015, direct care staff and direct support professionals in the human services field will receive a 2% cost of living adjustment. o They are scheduled to receive another 2% COLA on April 1, Election Reforms o The final budget includes a pilot program for public financing for the Office of State Comptroller. o The pilot program is only in affect for the 2014 election. o Funding comes from unclaimed funds currently held by the State Comptroller. o Participation by candidates for Comptroller is voluntarily. o New crimes and penalties for offenses involving public servants are created. Other Issues o EPIC Eligibility is expanded for this prescription drug program: For singles, the eligibility level is increased from $45,000 to $75,000 in annual income. For married couples, eligibility is increased from $50,000 to $100,000.