Plugged In @ Hinman Straub

November 1, 2024

What’s Inside

  • Mid-Year Updates to the NYS Financial Plan
  • Governor Announces Employer Savings
  • Governor Announces First National Semiconductor Technology Facility in the Nation
  • Governor Announces Funding to Support Dairy Farmers
  • In the News
  • Coming Up

Mid-Year Updates to the NYS Financial Plan

The New York State Division of Budget (DOB) has issued the Mid-Year Update to the New York State Financial Plan, which can be found here. The plan highlighted that state finances remain on solid footing with favorable operating results recorded through the first half of FY 2025 and an improved economic outlook. The economy continues to show strength as employment and wage growth exceeds previous forecasts, and inflation moderates. As a result, DOB has increased growth projections for nearly all economic indicators, including employment and income.

The cumulative outyear budget gaps are marginally higher than previously estimated and are now projected to total $1 billion in FY 2026, $6.2 billion in FY 2027 and $7.1 billion in FY 2028. These projected gaps, which include Medicaid spending projections that exceed the Global Cap spending allowance by roughly $2.2 billion beginning in FY 2026, are due to spending growth outpacing available resources. The outyear gaps are lower in part due to the use of temporary resources from prior year prepayments and excess fund balances. The structural deficits will need to be addressed in future years.

Governor Announces Employer Savings

This week, Governor Kathy Hochul announced that New York State employers are expected to save more than $191 million in 2025 due to a reduction in the annual workers’ compensation assessment rate — the rate was set on Tuesday and goes into effect on January 1, 2025. The workers’ compensation rate will be 7.1 percent of the standard premium or premium equivalent — a 22 percent decrease from 2024 — which is expected to save New York State businesses approximately $191 million.

As Chair of the NYS Workers’ Compensation Board, Chair Rodriguez establishes an assessment rate for all employers by Nov. 1 of each year, to be effective Jan. 1 of the subsequent calendar year. The employer assessment rates are determined by the Workers’ Compensation Board’s need and budgeted statewide premium. The rate is calculated by dividing the Board’s total estimated annual expenses by a base of total estimated statewide premium. Insurers are required to apply the assessment rate to their premium or premium equivalent.

More information can be found here.

Governor Hochul said:

Affordability is crucial for both businesses and employers to thrive. This tremendous increase in savings for New York State’s employers not only adds employment opportunities, but also strengthens the necessary services and the community that businesses provide. We are dedicated to supporting our State’s businesses and their employees, and ensuring that they receive the benefits they rely on to care for themselves and for their families.

The annual rate change since 2019 is below:

Year Rate
2019 12.6
2020 12.2
2021 11.2
2022 10.2
2023 9.8
2024 9.2
2025 7.1

Governor Announces First National Semiconductor Technology Facility in the Nation

Yesterday, Governor Hochul celebrated the designation of NY CREATES’ Albany NanoTech Complex as the location of the CHIPS for America EUV Accelerator, an NSTC facility. This announcement marks an anticipated significant investment in EUV research and development under the Biden-Harris Administration’s CHIPS and Science Act. This prestigious designation unlocks $825 million in federal funding and makes New York State the first state in the nation to land one of three NSTC facilities.

Governor Hochul said:

From day one of my administration, I pledged that New York State would lead the charge to bring back advanced manufacturing and R&D to the U.S., creating good jobs and economic opportunity in the process. Thanks to the winning combination of federal CHIPS funding and New York’s determination and ingenuity, the Albany NanoTech Complex will be home to the CHIPS for America EUV Accelerator, and fuel America’s advanced manufacturing renaissance. I thank the Biden-Harris Administration, the Department of Commerce, Natcast, and our federal delegation for their partnership as we continue to work together to advance U.S. semiconductor leadership, safeguard our national security and create a brighter future for all.

NY CREATES and Natcast, the operator of the NSTC, have signed a Memorandum of Understanding to support establishing the new EUV Accelerator in New York. The CHIPS for America EUV Accelerator will be supported by an investment of up to $825 million from the U.S. Department of Commerce and will be managed by Natcast.

Governor Announces Funding to Support Dairy Farmers

Governor Hochul has announced $21.6 million is available through the Dairy Modernization Grant Program to help New York’s dairy farmers and agricultural marketing cooperatives expand on-farm milk storage capacity and support projects that will improve the transportation and storage of milk.

The program will support the needs of dairy farmers and processors by facilitating the installation of critical technological and infrastructural improvements that will improve dairy supply chain efficiency and avoid the need for raw milk dumping during emergency events.

The Dairy Modernization Grant program is being administered by the Farm and Food Growth Fund (FFGF). Grants will range from $50,000 to $250,000 and will be awarded to eligible applicants for projects that seek to expand on-farm milk storage capacity; improve efficiencies; invest in milk transfer systems and cooling technologies; and more. Full details regarding project eligibility can be found at https://www.ffgrowthfund.org/dairymodernization.

Governor Hochul said:

New York’s dairy farms are the backbone of our agricultural industry, and they contribute so much to our communities, our economies, and our long legacy of agricultural excellence. I’m proud that the Dairy Modernization Grant Program will help our dairy farmers and processors make much needed improvements to their technology and facilities, helping New York State to remain a powerhouse in dairy nationally and ultimately getting nutritious, locally produced dairy products to more New Yorkers statewide.

New York State Agriculture Commissioner Richard A. Ball said:

The Dairy Modernization Grant Program provides critical funding to support our dairy farmers and cooperatives by investing in projects that upgrade agricultural facilities and facilitate the purchase of new equipment. I thank Governor Hochul for her continued support of New York’s dairy farmers, and encourage anyone eligible to learn more about this program and consider applying for these critical funds.

More information can be found here

In The News

City & State NY’s weekly Winners and Losers of this week here.

Budget watchdog pans New York’s proposed carbon tax plan.

Trucking firms call on Hochul to delay New York’s electric vehicle mandate.

New York Republicans fight to pick up seats in Democratic-run Senate.

The 2024 Upstate Power 100 here.

Early voting in New York jumps 67 percent compared with 2020.

How the perception of crime, not data, could sway New York voters.

Brian Gould appointed as deputy mayor of Buffalo.

In New York, Democrats see glimmer of hope after stinging midterm losses.

Dark money funds surprise group behind misleading Proposition 1 ads.

House covid panel refers Andrew Cuomo for potential prosecution.

New York’s largest municipal union isn’t endorsing a presidential candidate – in a blow to Kamala Harris.

Adams opponents urge ‘no’ on ‘power grab’ city charter amendments.

Hochul eyes higher tax receipts to drive down N.Y.’s debt.

New York State Court of Appeals validates 2021 state law on absentee ballot counting.

NYS candidates want to repeal SALT cap, but it’s hard to do, analysts say.

Coming Up

The New York State Board of Regents will hold its next meeting on November 4 and 5.

The Assembly will hold a public hearing on the oversight of budget measures related to developing needs in agriculture on November 13.

The New York STATE Commission on Ethics and Lobbying in Government (COELIG) will hold its annual public hearing on November 13.