Plugged In @ Hinman Straub – March 15, 2017

  • Budget Issues Become Clearer as Senate, Assembly Release One-House Budget Bills
  • Governor Visits Israel, Announces Economic and Cultural Commission
  • Governor Announces ‘Vital Brooklyn’ Initiative
  • Governor Announces Launch of Electric Vehicle Campaign
  • Assembly Hearing Looks at Subsidies for Upstate Nuclear Facilities
  • Senate Democrats Push for Single Payer Health Care
  • State Department of Health Looks at Impacts of American Health Care Act
  • Most School Districts Propose Budgets Within Property Tax Cap
  • Attorney General Warns of Consumer Scams
  • Political Update
  • Coming Up

Budget Issues Become Clearer as Senate, Assembly Release One-House Budget Bills

The Senate and Assembly are expected to approve their respective one-house budget bills later today as the state moves toward the April 1 start of the 2017-18 fiscal year.  The Senate leadership said that it plans to reject all of the taxes and fees increased in the Governor’s proposed budget.  The Assembly indicated that they plan to include small business tax cuts, research and development tax credits and changes to the Excelsior Jobs Program in their one-house budget.

Some of the biggest issues lawmakers are considering as part of the state budget are described below.

Extending the ‘Millionaire’s Tax’

New York’s tax surcharge on people earning more than $300,000 per year is set to expire at the end of 2017.  Gov. Cuomo has proposed a three-year extension of the tax surcharge.  The Assembly wants to increase the tax rate on high earners, and make the tax permanent, while the Senate indicated that it prefers that the surcharge be eliminated or reduced.

Public University Free Tuition Plan

The Governor has proposed the Excelsior Scholarship program, in which the state will cover the cost of tuition at SUNY and CUNY schools for students of families earning less than $125,000 per year, at a cost of $163 million per year.

Private colleges and universities are opposed, expressing concerns that they will lose students to public schools. They have proposed expanding the state’s existing Tuition assistance Program (TAP) grant program to support low-income residents who attend any accredited college in New York.

Raising the Age of Criminal Responsibility

New York is one of just two states where 16 and 17 year olds can be prosecuted as adults.  As part of his budget, Gov. Cuomo has proposed raising the age of criminal responsibility to 18.  The Assembly has approved similar measures in the past, but the Senate has not.

The Senate’s Independent Democratic Conference (IDC), a group of eight Democrats who are part of the Senate’s Majority coalition, said last week that its members will not will not vote for a budget that does not raise the age of criminal responsibility.

Local Government Consolidation

The Governor has proposed – as a condition of state aid to local governments — requiring counties to work with municipal governments to identify ways of sharing and consolidating services, like police, fire or snow plowing, in order to generate local property tax savings. The proposal would then be voted in a public referendum in November.

A number of local government officials and public sector unions are opposing the Governor’s proposal, saying that they have long worked with local government officials to find savings for property taxpayers.

Legalizing Ride Hailing Throughout the State

Currently, ride hailing services such as Uber and Lyft are only available in New York City.  The Governor’s budget would authorize it statewide, and the Senate has approved a bill to do so.

The Assembly has proposed its own bill to legalize ride-hailing services statewide, which includes higher insurance requirements than the Governor and Senate have proposed.

Workers’ Compensation Reform

A coalition of business groups led by the Business Council of New York State are pushing for Workers Compensation reforms.  The coalition members say that Workers’ Compensation costs are among the “biggest business and competitiveness concerns facing New York’s job creators.”

Opponents of the proposed reforms are concerned that they would reduce benefits for injured workers without guaranteeing insurance premium reductions for employers.

What’s Next?

Once each house has approved its one-house spending plan, the two houses are expected to commence a budget conference committee process to reach agreement on a legislative budget. Then they will enter into negotiations with the Governor to reach agreement on a 2017-18 state budget and have it enacted into law on or around April 1.

Governor Visits Israel, Announces Economic and Cultural Commission

During his recent trip to Israel, Gov. Cuomo announced the launch of the New York-Israel Commission to “strengthen economic and cultural ties” between New York and Israel.  New York Daily News publisher Mort Zuckerman will serve as honorary chair of the 22-member commission.

Governor Cuomo said:

“New York and Israel have always shared a deep cultural, social and economic bond and I am proud that we are working to make our partnership stronger than ever before.”

The Governor’s trip to Israel has led some observers to suggest that he is preparing to run for President in 2020.

Governor Announces ‘Vital Brooklyn’ Initiative

Last Thursday, Gov. Cuomo announced the $1.4 billion ‘Vital Brooklyn’ initiative to address “chronic social, economic and health disparities in Central Brooklyn.  The effort will “target and invest in eight integrated areas, establishing a national paradigm for addressing chronic disparities, like systemic violence and entrenched poverty in high-need communities.”

The eight “integrated areas of investment” are open space and recreation; healthy food; community-based healthcare; comprehensive education and youth development; economic empowerment and job creation; community-based violence prevention; affordable housing; and resiliency

Gov. Cuomo said:

“For too long investment in underserved communities has lacked the strategy necessary to end systemic social and economic disparity, but in Central Brooklyn those failed approaches stop today.  We are going to employ a new holistic plan that will bring health and wellness to one of the most disadvantaged parts of the state…. Today, we begin to create a brighter future for Brooklyn, and make New York a model for development of high need communities across the country.”

Governor Announces Launch of Electric Vehicle Campaign

Last week, Gov. Cuomo announced the launch of a new electric vehicle campaign by the New York State Energy Research and Development Authority (NYSERDA).

The campaign will include the installation of charging stations; working with New York City-area public and private employers to create an incentive program to encourage their employees to buy electric vehicles; providing “innovative financing” to make installing charging stations economically viable for site owners; and developing tourism routes specifically for electric vehicle owners that will highlight charging station locations in the Mid-Hudson Valley, including in the Catskills.

Gov. Cuomo said:

“This multi-pronged campaign will help in this administration’s efforts to fight climate change, strengthen infrastructure to support the use of electric cars, and help reduce New York’s carbon footprint on our roadways.  With these actions, we are taking another step toward a cleaner, greener and more sustainable New York for all.”

According to the Governor, the increased use of electric vehicles will help the state reduce greenhouse gas emissions 40 percent by 2030.

Assembly Hearing Looks at Subsidies for Upstate Nuclear Facilities

Last week, four Assembly committees held a public hearing that looked at a proposed subsidy that would keep upstate nuclear power plants open.

Last year, the state’s Public Service Commission (PSC) approved a “zero-emissions credit” plan as part of its Clean Energy Standard.  The plan will require energy ratepayers throughout the state to pay several billion dollars over the next 12 years to support the operations of three aging nuclear plants – the FitzPatrick, Ginna, and Nine Mile facilities – beginning in April.

Critics of the plan want state legislators to block the subsidies.  Supporters argue that the plants must continue operating if the state is going to meet its clean energy goals.  They also pointed to the local job and tax benefits the plants provide.

Senate Democrats Push for Single Payer Health Care

The Senate Democratic Conference is pushing for a package of bills are intended to prepare for the potential repeal of the federal Affordable Care Act (ACA).

The three bill package would create a single-payer public health system; codify the state insurance marketplace into law; and change the Insurance Law to allow the state’s health care exchange to function if the ACA is repealed.

Senate Minority Leader Andrea Stewart-Cousins said:

“The Senate Democratic Conference will not sit idly by while the White House attempts to strip away New Yorkers’ health coverage and the (state) Senate Republicans turn a blind eye.  New York is once again at the forefront of the resistance, and we are proud to lead it.”

State Department of Health Looks at Impacts of American Health Care Act

Last Thursday, The state Department of Health (DOH) released a fact sheet which finds that the legislation being considered by the House of Representatives to replace the Affordable Care Act (commonly called “Obamacare”) would have “significant financial implications” for New York State.

DOH’s analysis finds that:

  • more than 1 million New Yorkers would face “significant loss of health care”;
  • about $4.5 billion in costs would be shifted to state, counties and safety net hospitals over the next four years, “increasing the tax burden on residents and putting countless healthcare providers in jeopardy”; and
  • $400 million in tax credits New Yorkers rely on to purchase health insurance coverage would be lost, and in some cases it would be replaced with alternative subsidies which are not related to the person’s ability to pay.

Gov. Cuomo said:

“Affordable healthcare is not a partisan issue.  New York’s entire delegation – Democrats and Republicans – need to stand up and they need to fight, stand against this regressive plan, and protect the people they are sworn to represent. There is no going back.”

Most School Districts Propose Budget Within Property Tax Cap

According to a report released last week by the NYS Association of School Business Officials, 98 percent of the state’s school districts have submitted proposed budgets that are within the state’s real property tax cap.  The cap, which is linked to the rate of inflation, stands at 1.26 percent.

So far, 15 school districts have proposed overriding the cap, the lowest since the cap took effect in the 2011-12 school year.

Michael Borges, the group’s Executive Director, said:

“School district leaders continue to manage their finances in a prudent and cost effective manner that reflects community priorities at a cost that the public can support.  School districts hope the Legislature will support a state Budget that includes a combination of mandate relief and increased aid that will allow them to provide a sound basic education to all students in the state.”

The Governor has proposed a $960 million increase in education aid as part of his budget proposal.

Attorney General Warns of Consumer Scams

Last week, State Attorney General Eric Schneiderman released the list of the top ten consumer fraud complaints received in 2016 by his office, and also consumer advice to avoid being the victim of a scammer.

The most common complaints received by the Attorney General’s office were internet-related complaints; complaints about automobile sales, service, financing, and repairs; consumer-related services; and landlord/tenant complaints

Attorney General Schneiderman said:

“This serves as a reminder: fraudsters are always looking for ways to line their pockets at the expense of unsuspecting consumers.  The best weapon against scams is an informed consumer – and the law. I encourage New Yorkers to report fraud, and my office will continue its long tradition of vigorously enforcing New York’s strong consumer protection laws.”

Political Update

Winners & Losers

Each week, City & State New York publishes a list of the week’s political “winners” and “losers.”  Read last week’s list here.

Coming Up

The Senate and Assembly are in session today, and the return to Albany next Monday, Tuesday, Wednesday and Thursday.

The Senate and Assembly expect to approve their respective one-house budget bills today, and then begin the budget conference committee process next Monday.

The Joint Commission on Public Ethics (JCOPE) holds its next meeting on March 28.

The state’s 2017-18 fiscal year begins on April 1.